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Please solve this company a/c question

Harish Kumar (IPCC) (475 Points)

23 January 2013

Q.1) The director of a company have forfeited 500 shares of Rs. 20 each Rs. 15 per share called up,

on which Rs. 10 per share has been paid by B.

They re-issue the share to D as Rs. 15 paid up at Rs. 8 per share

& make a further call of Rs. 5 per share & this is paid by D.

Pass Journal entry

Please Solve This Question....... Thank You

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4 Replies

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 23 January 2013

your query is not much clear.. please redraft..

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MD. RAFI (Manager Accounts (future CA)) (670 Points)
Replied 23 January 2013

Date	Journal Entries	Debit	Credit
1	Equity Share Capital a/c Dr. 500*15	7500
	To Equity Share Calls a/c 500*5		2500
	To Forfeited Shares a/c 500*10		5000
	(Being Forfetiure of 500 shares for non payment of calls at Rs. 5 per share as per BR No. …………. Dt. …………..)

2	Bank a/c Dr. 500*8	4000
	Forfeited Shares a/c Dr. 500*7	3500
	To Equity Share Capital a/c		7500
	(Being re-issue of 500 Forfetied shares at Rs. 8 per share as 15 paidup BR No. …………. Dt. …………..)

3	Forfeited Shares a/c Dr. 500*3	1500
	To Capital Reserve (5000-3500)		1500
	(Being Profit on re-issue of 500 shares transferred to Capital Reserve BR No. …………. Dt. …………..)

4	Equity Share final call Dr. 500*5	2500
	To Equity Share capital a/c		2500
	(Being final call due)
5	Bank a/c Dr.
	To Equity Share final call Dr. 500*5 (Being Final call money received)	2500	2500

Please corect me if I am wrong.

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Harish Kumar (IPCC) (475 Points)
Replied 23 January 2013

Originally posted by : MD. RAFI
	Date Journal Entries Debit Credit 1 Equity Share Capital a/c Dr. 50015 7500 To Equity Share Calls a/c 5005 2500 To Forfeited Shares a/c 50010 5000 (Being Forfetiure of 500 shares for non payment of calls at Rs. 5 per share as per BR No. …………. Dt. …………..) 2 Bank a/c Dr. 5008 4000 Forfeited Shares a/c Dr. 5007 3500 To Equity Share Capital a/c 7500 (Being re-issue of 500 Forfetied shares at Rs. 8 per share as 15 paidup BR No. …………. Dt. …………..) 3 Forfeited Shares a/c Dr. 5003 1500 To Capital Reserve (5000-3500) 1500 (Being Profit on re-issue of 500 shares transferred to Capital Reserve BR No. …………. Dt. …………..) Please corect me if I am wrong.