Sarthaks APP
+1 vote
59.8k views
in Accounts by (57.2k points)

The Directors of a company forfeited 300 shares of Rs. 10 each issued at a premium of Rs. 3 per share, for the non-payment of the first call money of Rs. 2 per share. The final call of Rs. 2 per share has not been made. Half the forfeited shares were reissued at Rs. 1,500 as fully paid-up. Record the journal entries for the forfeiture and reissue of shares. 

1 Answer

+2 votes
by (55.1k points)
selected by
 
Best answer

Working Note:

Capital Reserve = Balance in share forfeiture after re- issue Cr. (per share) x No. of shares re- issued 

= Rs 6 x 150

= Rs. 900

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...