Page 345 - VIRANSH COACHING CLASSES

10. Equity Share Capital A/c ...................................Dr. 8,000
To Equity Share First Call A/c 1,600
To Equity Share Final Call A/c 2,400
To Share Forfeiture A/c 4,000
(Being forfeiture of 80 shares due to non-payment of
first & final call)
11. Bank A/c ............................................................Dr. 6,400
Share Forfeiture A/c 1,600
To Equity Shares Capital A/c 8,000
(Being reissue of 80 forfeited shares @ ` 80 per share)
12. Share Forfeiture A/c ............................................Dr. 2,400
To Capital Reserve A/c 2,400
(Being balance on Share Forfeiture A/c transfer to
Capital Reserve A/c)

17 Show Journal Entries in the following cases -
(a) Prashant Trading Company Ltd. Forfeited 100 equity shares of ` 100 each due to nonpay-
ment of Final Call of ` 30 and the same were re-issued at ` 50 per share fully paid.
(b) Swanand Trading Company Ltd. forfeited 1000 equity shares of ` 10 each on which ap-
plication money ` 2 and allotment money of ` 4 per share was paid. The first call money
of ` 2 per share remained unpaid. The company re-issued all the forfeited shares @ ` 5
per share, ` 8 paid-up.
Journal Entries
(a)

Date Particulars L.F. Debit ` Credit `
1. Equity Share Capital A/c ...................................Dr. 10,000
To Equity Share Final A/c 3,000
To Share Forfeiture A/c 7,000
(Being forfeiture of 100 equity shares due to non-
payment of final call of ` 30 per share)
2. Bank A/c ............................................................Dr. 5,000
Share Forfeiture A/c ...........................................Dr. 5,000
To Equity Share Capital A/c 10,000
(Being re-issue of 100 forfeited shares @ ` 50 per
share fully paid)
3. Share Forfeiture A/c ...........................................Dr. 2,000
To Capital Reserve A/c 2,000
(Being balance on share forfeiture A/c transferred to
Capital Reserve)

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