Question

Jupiter Ltd. issued shares of Rs. 100 each at a premium of 40% payable as follows :
`{:("On Application Rs. 50"),("On Allotment Rs. 70 (including premium)"),("On First & Final Call Rs. 20"):}`
Vinita, who applied for 700 shares and to whom 400 shares were allotted on prorata basis did not pay allotment and her shares were immediately fofeited. Pass entry for forfeiture of shares.

Answer 1

Amount credited to Share Share Forfeiture Account Rs. 32,000.
Hint : Securities Premium Reserve A/c will be debited by Rs. 13,000 in the entry for forfeiture of shares.