The directors of a limited company resolved to forfeit 1000 equity shares of Rs. 10 each, Rs. 7.50 paid up, for non-payment of the final call money of Rs. 2.50 per share. 700 shares were re-issued at Rs. 7 per share. What amount would be transferred to the capital account? Please pass the entries and show your calculations.
2 Replies
Chandan
(Student)
(47 Points)
Replied 15 May 2010
Share Capital A/c (Rs.7.50*1000) Dr. 7500
To Forfieted shares A/c (Rs.5.00*1000) 5000
To Share Final Call A/c (Rs.2.50*1000) 2500
Bank A/c (Rs.7*700) Dr. 4900
Forfieted Shares A/c (Rs.3.00*700) Dr. 2100
To Shares Capital A/c (Rs.10*1000) 7000
Forfieted Shares A/c Dr. 1400
To Capital Reserve A/c 1400
Harish
(CS Executive)
(386 Points)
Replied 16 May 2010
In the first entry share capital should be debited by the called up money i.e. RS. 10 in this case and you have taken Rs. 7.50.
Please show your calculation For Rs. 1400 in the last entry.
As per my calculation amount transferred to capital reserve would be Rs. 5400.
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