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Share forfeiture and reissue (Accounts)

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This query is : Open


( Author )
04 February 2013

please answer this ques. to clear my doubt:
share price Rs.10
issued at Rs.9
amount received Rs.6
share is forfeited and reissued at Rs.11.
Which of the following entry is correct at the time of reissue:
1. Bank a/c dr. 11
discount on issue of share dr. 1
To Share capital a/c 10
To sec. premium a/c 2
OR
2. Bank a/c dr. 11
To share capital a/c 10
To securities premium a/c 1



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