400 shares forfeited and each at 10/- with premium of 10%. on application 2/-, allotment 3/-(including premium), first call 3/- and final call 3/-. these share were forfeited for non payment of first call money. and re-issued 350 share each at 8/- fully paid up. how much capital reserve
in case premium found first call how to calculate.
Hari, No: 9533149809, hari.vemula83 @ hotmail.com
Entry for forfeiture :
Share Capital a/c dr.(400*10) 4000
To Share first call a/c(400*3) 1200
to share final call a/c(400*3) 1200
To share forfeiture a/c(400*4) 1600
Entry for re-issue :
Bank a/c dr.(350*8) 2800
Forfeiture a/c dr(350*2) 700
To Share capital a/c(350*10) 3500
Entry for transfer to capital reserve:
Forfeiture a/c dr.(350*2) 700
To Capital reserve a/c 700
working note for amt. to be transferred to capital reserve:
Amt. forfeited per share - 1600/400 = 4
Less:Loss on re-issue -700/350 =2
surplus =2( to be transferred i.e 350*2=700)
I hope ur doubt is cleared....
can any one explain
Mr. Bajaj who was the holder of 200 Equity shares of Rs. 100 each of Canny Ltd., on which
only rs. 75 per share has been called up, couldn't pay his dues on allotment and first call
each at rs. 25 per share. The director forfeited the above share and reissued 150 of such share
to Mr. Birla at Rs. 65 per share paid up as Rs. 75 per share. The amount to be transferred to capital
reserve account will be
a) Rs. 1500 b)Rs. 2250 c) Rs. 2750 d) Rs. 3250
CAclubindia
