Y Ltd. forfeited 90 shares of ` 10 each, ` 8 called up issued at a premium of ` 2 per share to
R for non-payment of allotment money of ` 5 per share (including premium). Out of these,80 shares were re-issued to Sanjay as ` 8 called up for ` 10 per share
| Books of Y Ltd. | |||||
| Journal | |||||
Date | Particulars | L.F. | Debit Amount Rs | Credit Amount Rs | ||
1. | Share Capital A/c (90*8) | Dr. |
| 720 |
| |
| Security Premium A/c (90*2) | Dr. |
| 180 |
| |
| To Share Forfeiture A/c (90*5) To Share Allotment A/c (90*5) |
|
|
| 450 450 | |
| (Being 90 shares forfeited for non-payment of allotment money)
|
|
|
|
| |
2. | Bank A/c (80*10) | Dr. |
| 800 |
| |
| To Share Capital A/c (80*8) |
|
|
| 640 | |
| To Security premium A/c (80*2) |
|
|
| 160 | |
| (Being 80 shares reissued at Rs. 8 called-up for Rs. 10 per share) |
|
|
|
| |
|
|
|
|
|
| |
3. | Share Forfeiture A/c (80*5) | Dr. |
| 400 |
| |
| To Capital Reserve A/c |
|
|
| 400 | |
| (Being the transfer of profit on reissue of 80 shares) |
|
|
|
|
Working Notes:
Calculation of Share Forfeiture for 80 shares (forfeited and re-issued)
450/90*80 = Rs 400 (transferred to Capital Reserve)