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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
JCV Ltd. forfeited 200 shares of ₹10 each, issued at a premium of ₹2 per share, for non-payment of allotment money of ₹3 per share (including premium). The first and final call of ₹4 per share had not been made as yet. 50% of the forfeited shares were reissued at ₹8 per share, fully paid-up. Pass the necessary Journal entries for the forfeiture and reissue of shares. (CBSE 2011 C)
Application ₹5 + Allotment ₹3 (₹1 + ₹2 premium) + First & Final Call ₹4 = ₹12 (₹10 face value + ₹2 premium). Called-up at forfeiture = Application + Allotment = ₹5 + ₹1 = ₹6 (excluding premium).
JOURNAL (Books of JCV Ltd.)
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Share Capital A/c (200 × ₹6) Dr. | 1,200 | |||
| Securities Premium Reserve A/c (200 × ₹2) Dr. | 400 | |||
| To Share Forfeiture A/c (200 × ₹5) | 1,000 | |||
| To Calls-in-Arrears A/c (200 × ₹3) | 600 | |||
| (200 shares, ₹6 called-up, forfeited for non-payment of allotment money of ₹3 per share, including ₹2 premium) | ||||
| Bank A/c (100 × ₹8) Dr. | 800 | |||
| Share Forfeiture A/c (100 × ₹2) Dr. | 200 | |||
| To Share Capital A/c (100 × ₹10) | 1,000 | |||
| (100 shares, 50% of those forfeited, reissued at ₹8 per share, fully paid-up) | ||||
| Share Forfeiture A/c Dr. | 300 | |||
| To Capital Reserve A/c | 300 | |||
| (Amount of Share Forfeiture on the 100 reissued shares transferred to Capital Reserve) |
Working Note: Share Forfeiture credit ₹5/share, less ₹2/share discount on reissue = ₹3/share × 100 shares = ₹300.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.88 - Share Capital", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Share Capital.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Vol 2 Chapter 1 Q.88 - Share Capital" instantly.