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Question
Arjun was holding 1,000 shares ₹ 10 each of Vanavill Electronics Ltd, issued at par. He paid ₹ 3 on the application, ₹ 4 on the allotment but could not pay the first and final call of ₹ 3. The directors forfeited the shares for nonpayment of call money. Give Journal entry for forfeiture of shares.
Solution
| Date | Particulars | L.F. | Debit Rs. | Credit Rs. |
| (1) | Share capital A/c (1,000 × Rs. 10) Dr. To share I and final call A/c (1,000 × Rs. 3) To Forfeited shares A/c (1,000 × Rs. 7) [Shares forfeited for non payment of call money] |
10,000 |
3,000 |
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