CBSE 2025, Compartment, Set 1

Question

Pass necessary journal entries for forfeiture and reissue of shares in the following case:
Krisha Ltd. forfeited 1,000 shares of ₹10 each, fully called-up on which only ₹4,000 had been received. 500 of the forfeited shares were reissued for ₹8 per share fully paid-up.

Edvaya · Accepted Answer

The correct answer is Subjective. **Journal Entries in the books of Krisha Ltd.** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | (i) | Share Capital A/c Dr. ($1,000 	imes 10$) To Share Forfeiture A/c To Calls-in-Arrears A/c *(1,000 shares forfeited on which only ₹4,000 was received)* | | 10,000 | 4,000 6,000 | | (ii) | Bank A/c Dr. ($500 	imes 8$) Share Forfeiture A/c Dr. ($500 	imes 2$) To Share Capital A/c ($500 	imes 10$) *(Reissue of 500 shares at ₹8 per share fully paid up)* | | 4,000 1,000 | 5,000 | | (iii)| Share Forfeiture A/c Dr. To Capital Reserve A/c *(Balance in share forfeiture relating to reissued shares transferred to capital reserve)* | | 1,000 | 1,000 | *Working Note for Capital Reserve:* Amount forfeited per share = $4,000 / 1,000 = ₹4$. Discount on reissue per share = ₹2. Gain per share = ₹2. Total transfer = $500 	imes 2 = ₹1,000$.

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Accountancy > Accounting For Companies > Accounting For Share Capital

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