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Pass Journal entries in the following case: NK Ltd. forfeited 200 Equity Shares of ₹10 each, issued at a premium of ₹5 per share, held by Ram, for non-payment of the final call of ₹3 per share. Of these, 100 shares were reissued to Narender at a discount of ₹4 per share.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Equity Share Capital A/c (200 × ₹10) Dr. | 2,000 | |||
| To Share Forfeiture A/c (200 × ₹7) | 1,400 | |||
| To Calls-in-Arrears A/c (200 × ₹3) | 600 | |||
| (200 shares of ₹10 each forfeited for non-payment of the final call) | ||||
| Bank A/c (100 × ₹6) Dr. | 600 | |||
| Share Forfeiture A/c (100 × ₹4) Dr. | 400 | |||
| To Equity Share Capital A/c | 1,000 | |||
| (100 shares reissued to Narender at a discount of ₹4 per share, fully paid-up) | ||||
| Share Forfeiture A/c Dr. | 300 | |||
| To Capital Reserve A/c | 300 | |||
| (Balance in Share Forfeiture Account of the 100 reissued shares transferred to Capital Reserve) |
Working Note: Share Forfeiture credit ₹7/share, less ₹4/share discount on reissue = ₹3/share × 100 shares = ₹300.
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This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.84 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
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