Question

Arushi Computers Ltd issued 10,000 equity shares of Rs.100 each at 10% discount. 

The net amount payable as follows:

On Application	Rs.20
On Allotment	30 (Rs.40- discount Rs.10)
On First call	Rs.30
On Final call	Rs.10

A shareholder holding 200 shares did not pay final call. His shares Were forfeited. Out of these 150 shares were reissued to Ms.Sonia at Rs.75 per shares. Give journal entries in the books of the company.

Answer 1

Working note 

Note: At the time of forfeiture discount should be credited and when we reissue of these shares discount should be debited (special case).