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Question
Lakshmi was holding 50 hares of ₹ 10 each on which he paid ₹ 2 on application but could not pay ₹ 4 on the allotment and ₹ 2 on first call. Directors forfeited the shares after the first call. Give journal entry for recording the forfeiture of shares.
Solution
| Date | Particulars | L.F. | Debit Rs. | Credit Rs. |
| (1) | Share capital A/c (50 × Rs. 8) Dr. To share I call A/c (50 × Rs. 2) To share allotment A/c (50 × Rs. 4) To Forfeited Shares A/c (50 × Rs. 2) [Forfeited of shares made] |
400 | 100 200 100 |
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