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)

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