Company accounts

Rs. 3 is Minimum Amount for which the shares can be issued

forfeited share reissue 500 shares @ 3/- i.e 1500/-

1. equity capital a/c       dr      3500(500*7/-)

          To calls in arrear a/c             1500(500*3/-)

           To forfeited share a/c            2000(500*4/-)

2. bank a/c                   dr               1500

     forfeited share a/c  dr             2000

             To equity capital a/c                      3500

basically if at the time of issue there was no discount given by Co. then while issuing forfeited share co. cannot give discount because it is not possible to issue one class of share at par & the other at discount, so the Answer will be 10.

And miss Swati ghosh i want to tell u that the amount which is been received by the co. from the shareholder can only be forfeited as the entry u have passed are wrong . check it out.

entry should be:-

1. equity capital a/c       dr      5000500*10/-)

          To calls in arrear a/c             1500(500*3/-)

           To forfeited share a/c            3500(500*7/-)