ABC Ltd. invited applications for 1000 shares of Rs.10 each on 1st January, 2002. The payments to be made as follows: Rs.3 on application; Rs.3 on allotment; Rs.4 on 1st call The issue was fully subscribed. The full amounts due were collected for allotment and 1st call with the exception of Mr. A, who is allotted 300 shares and failed to pay the amounts due on allotment and first call. These shares have been forfeited. 200 of these shares have been reissued @ Rs.8 per share. Pass the entries from forfeiture and reissue of A’s shares.
Share Capital Account Dr. 3000
To Share Allotment Account 900
To Share 1st Call Account 1200
To Share Forfeiture Account 900
(Shares forfeited for non payment)
Bank Account 1600
Dr.
Share forfeiture Account 400
Dr.
To Share Capital
(Part of the forfeited shares have been 2000
reissued)
Share Forfeiture Account 200
Dr.
To Capital Reserve 200
(The unused portion of the share
forfeiture account representing the
reissued shares transferred to capital
reserve)
Please explain how 200 in share foreiture accounts. please show me workiing ..if possible please explain
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