Question 35 of 40
Q.Nivetha Ltd., forfeited 100 shares of ₹ 10 each, ₹ 8 called up, on which Mayuri had paid application and allotment money of ₹ 6 per share. Of these, 75 shares were re-issued to Sowmiya by receiving ₹ 7 per share paid up as ₹ 8 per share. Pass Journal entries for Forfeiture and Re-issue.
Puducherry TnboardTamil Nadu HSC (DGE) Commerce Board 2025Subjective· 3mImportance★★★★★
88% · 35/40 Questions
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Start your 14-day free trial to unlock the full solution →Forfeit 100 shares (₹8 called, ₹6 received): Share Capital Dr 800 → Forfeited 600 + Calls in Arrears 200. Reissue 75 at ₹7 credited ₹8: Bank 525 + Forfeited 75 → Capital 600. Capital Reserve = ₹375.
Working: ₹8 called up, ₹6 paid ⇒ ₹2 unpaid per share.
Journal Entries
| Particulars | Dr ₹ | Cr ₹ |
|---|---|---|
| Equity Share Capital A/c Dr (100 × 8) | 800 | |
| To Forfeited Shares A/c (100 × 6) | 600 | |
| To Calls in Arrears A/c (100 × 2) | 200 | |
| (100 shares forfeited for non-payment of ₹2) | ||
| Bank A/c Dr (75 × 7) | 525 | |
| Forfeited Shares A/c Dr (75 × 1) | 75 | |
| To Equity Share Capital A/c (75 × 8) | 600 | |
| (75 shares reissued at ₹7, credited as ₹8 paid up) | ||
| Forfeited Shares A/c Dr | 375 | |
| To Capital Reserve A/c | 375 | |
| (Profit on reissued shares transferred) | ||
| … |
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