FORFEITURE & REISSUE OF SHARES (Q.14.)
Channel: vikash chakraborty
Date: 2017-02-24

Question: 14. Give Journal entries to record the following transaction of forfeiture and reissue of shares and open Share Forfeited Account in the books of the company.
L Ltd. forfeited 470 Equity Shares of Rs.10 each issued at a premium of Rs.5 per Share for non-payment of allotment money of Rs.8 per share (including share premium Rs.5 per share) and the first and final call of Rs.5 per share. All the forfeited share were subsequently reissued at Rs.14 per share.
[C.B.S.E. 2011 Modified]