Text Limited made an issue of 20000 equity shares of hundred rupees pa...
Journal Entries for Forfeiture and Reissue of Shares
Issue of Shares
Particulars | Debit | Credit
--------------------------------------------------------
Bank A/c | 2,000,000 |
Share Capital A/c | | 2,000,000
(Being the issue of 20,000 equity shares)
Bank A/c | Debit | Credit
--------------------------------------------------------
Application A/c | 500,000 |
Share Capital A/c | | 500,000
(Being the receipt of application money)
Application A/c | Debit | Credit
--------------------------------------------------------
Share Allotment A/c | 500,000 |
Share Capital A/c | | 500,000
(Being the allotment of shares and receipt of allotment money)
Share Allotment A/c | Debit | Credit
--------------------------------------------------------
First Call A/c | 600,000 |
Share Capital A/c | | 600,000
(Being the receipt of first call money)
First Call A/c | Debit | Credit
--------------------------------------------------------
Final Call A/c | 720,000 |
Share Capital A/c | | 720,000
(Being the receipt of final call money)
Forfeiture of Shares
Particulars | Debit | Credit
--------------------------------------------------------
Share Allotment A/c | 7,500 |
First Call A/c | 7,500 |
Share Forfeiture A/c | 15,000 |
(Being the forfeiture of 150 shares on which first call was due)
Share Allotment A/c | 9,000 |
Final Call A/c | 9,000 |
Share Forfeiture A/c | 18,000 |
(Being the forfeiture of 180 shares on which final call was due)
Share Forfeiture A/c | Debit | Credit
--------------------------------------------------------
Share Capital A/c | | 3,000
Share Forfeiture A/c | 30,000 |
(Being the forfeiture of 300 shares)
Share Forfeiture A/c | Debit | Credit
--------------------------------------------------------
Share Forfeiture A/c | 12,000 |
Share Allotment A/c | 6,000 |
Share Capital A/c | | 18,000
(Being the reissue of 200 forfeited shares at Rs. 60 each)
Bank A/c | Debit | Credit
--------------------------------------------------------
Share Forfeiture A/c | 12,000 |
(Being the receipt of reissue price of forfeited shares)
Share Capital Account
Particulars | Amount (Rs.) |
---------------------------------------------
Opening Balance | 2,000,000 |
Issue of Shares | 2,000,000 |
Allotment Money | 500,000 |
First Call Money |