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Question
Bee Ltd. Company forfeited 100 Equity Shares of the face value of ₹ 10 each, ₹ 6 per share called-up, for non-payment of first call of ₹ 2 per share. The forfeited shares were subsequently reissued as fully paid-up @ ₹ 7 each.
Give necessary entries in the company's Journal.
Solution
Books of Bee Ltd. Company
Journal
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
|
|
Equity Share Capital A/c |
Dr. |
|
600 |
|
|
|
To Share Forfeiture A/c |
|
|
400 |
|
|
|
To Calls-in-Arrears A/c |
|
|
200 |
|
|
|
(100 shares of Rs 10 each Rs 6 called up, forfeited for the non-payment of first call Rs 2 per shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
700 |
|
|
|
Share Forfeiture A/c |
Dr. |
|
300 |
|
|
|
To Share Capital A/c |
|
|
1,000 |
|
|
|
(100 shares of 10 each re-issued at Rs 7 per share, fully paid-up) |
|
|
|
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|
|
|
|
|
|
|
|
|
Share Forfeiture A/c |
Dr. |
|
100 |
|
|
|
To Capital Reserve A/c |
|
|
100 |
|
|
|
(Balance in Share Forfeiture of re-issued shares transferred to Capital Reserve) |
|
|
|
|
Working Note-
|
Share Forfeiture Credit |
₹ |
400 |
|
Share Forfeiture Debit |
₹ |
300 |
|
Balance in Share Forfeiture of re-issued shares |
|
100 |
Capital Reserve = Balance in Share Forfeiture of re-issued shares = ₹ 100
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|
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| Equity Share Capital A/c | Dr. | ₹X | |
| To share Forfeited A/c | ₹Y | ||
| To Equity Share Allotment A/c | ₹Z |
Here X, Y and Z are:
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Based on the below information, you are required to answer the following question:
|
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