Forfeiture of share

A/c entries 1057 views 6 replies

Guest

Q1/ X ltd forfeitured 200 shares of Ravi of Rs10. each . Rs8 called up on which he had paid application and allotment money of Rs3 per share .Out of these 100 shares were re-issued as fully paid up for Rs8 per share.pass the journal entry.

Q2/ Y Ltd forfetured 300 shares of Rs10 each Rs7 called up for non-payment of the first call of Rs2 per share. Out of these,100 shares were immediately re-issued at Rs6 per share. Out of these ,100 shares were immediately re-issued at Rs6 per share .Pass te Journal entry.

Replies (6)

Sunshine

Helping All

10575 Points Joined March 2010

Q.1

Share capital a/c dr....... 1600

to Share application and allotment a/c 1000

to Share forfeiture a/c 600

Bank a/c dr. 800

Share forfeiture ac dr. 200

to Share capital a/c 1000

Share forfeiture a/c dr... 100

to Capital reserve a/c 100

Q.2

Share capital a/c dr. 2100

To share forfeiture a/c 1500

To Share 1st call A/c 600

Bank a/c dr 600

Share forfeiture a/c dr. 400

To Share capital a/c 1000

Share forfeiture a/c dr. 100

To capital reserve a/c 100

Vijay

Adamo Studio

2112 Points Joined March 2011

Dont u think there is a mistake in the entries?

Sunshine

Helping All

10575 Points Joined March 2010

Goshhh....notebook se idhar copy karte time sab ulta ho gaya...hehhe...Thanks a lot Vijay..aaj to mera popat ban jata

Vijay

Adamo Studio

2112 Points Joined March 2011

Thats like a good girl

Guest

Please explain me working notes for re-issue of forfeitured shares in my first question.

Sunshine

Helping All

10575 Points Joined March 2010

Bank a/c dr. 800

Share forfeiture ac dr. 200

to Share capital a/c 1000

100 shares reissued at 8 per share so bank is debited with 800....face value of shares is 100*10 =1000 so share capital increased with 1000.....balance amount in debit side is kinda loss which is adjusted with share forfeiture account....i.e 200

Now for 200 shares the balance in share forfeiture account is 600..so for 100 reissued shares the debit balance is 300..and credit balance is 200...So the balance debit amount of 100 is tranferred to capital reserve account...

Share forfeiture a/c dr... 100

to Capital reserve a/c 100