i) Journal Entries Particulars Dr. Cr 1. Share Capital Account 45,000 Dr. 25,000 To Share Allotment Account 5,000 To Discount on Issue Account 15,000 To Share Forfeiture Account (Shares forfeited for default) 2. Bank Account Dr. 40,000 Share Forfeiture Account 5,000 Dr. 5,000 Discount on Issue Account 50,000 Dr. To Share Capital (Forfeited shares reissued) Share Forfeiture Account 10,000 3. Dr. 10,000 To Capital Reserve (Excess amount in share forfeiture account transferred) ii) Journal Entries Particulars Dr. Cr 1. Share Capital Account 1,400 Dr. 1,000 Share Premium Account 600 Dr. 1,800 To Share Forfeiture Account To Share Allotment Account (Shares forfeited for default) 2. Bank Account 2,800 Dr. 2,000 To Share Capital 800 To Share Premium Account (Forfeited shares reissued at premium) 3. Share Forfeiture Account 600 Dr. 600 To Capital Reserve (Share forfeiture account transferred to capital reserve)
i) Journal Entries Particulars Dr. Cr 1. Share Capital Account Dr. To Share Allotment Account To Discount on Issue Account To Share Forfeiture Account (Shares forfeited for default) 45,000 25,000 5,000 15,000 2. Bank Account Dr. Share Forfeiture Account Dr. Discount on Issue Account Dr. To Share Capital (Forfeited shares reissued) 40,000 5,000 5,000 50,000 3. Share Forfeiture Account Dr. To Capital Reserve (Excess amount in share forfeiture account transferred) 10,000 10,000 ii) Journal Entries Particulars Dr. Cr 1. Share Capital Account Dr. Share Premium Account Dr. To Share Forfeiture Account To Share Allotment Account (Shares forfeited for default) 1,400 1,000 600 1,800 2. Bank Account Dr. To Share Capital To Share Premium Account (Forfeited shares reissued at premium) 2,800 2,000 800 3. Share Forfeiture Account Dr. To Capital Reserve (Share forfeiture account transferred to capital reserve) 600 600
217622_47073_company_account.docx