Question

500 shares of Rs. 10 each, issued at a premium of Rs. 1 on which Rs. 8 (including premium) was called and Rs. 6 (including premium) was paid, have been forfeited. 400 of these shares were re-issued as fully paid in such a way that Rs. 800 were transferred to capital reserve. Journalise.

Answer 1

Re-issued Price Rs. 7 per share.
Hint : Entry for forfeiture will be :
`{:("Share Capital A/c Dr. 3,500"),(" To Calls in Arrears A/c 1,000"),(" To Share Forfeiture A/c 2,500"):}`