Share Forfeiture

Face value per share = ₹10
Amount not yet called = ₹3 (final call)
Amount called = ₹7
Amount unpaid = ₹2
Amount paid = ₹5

Total paid-up money for 600 shares = 600 × ₹5 = ₹3,000
This amount is credited to the Share Forfeiture Account.

Journal Entry: \begin{verbatim} Share Capital A/c Dr. 4,200 To Share Forfeiture A/c 3,000 To Calls in Arrears A/c 1,200 \end{verbatim}

300 shares forfeited
Called-up amount per share = ₹70
Unpaid amount = ₹20
Paid amount = ₹50

Share Forfeiture Account on forfeiture = 300 × ₹50 = ₹15,000

Reissued 100 shares at ₹70
Since ₹70 is paid up and reissued at par, no extra discount is allowed,
Hence, amount from forfeiture account used for reissue = Nil
Balance of forfeiture account remains unaffected for these 100 shares.

Forfeiture balance related to these 100 shares = 100 × ₹50 = ₹5,000

Therefore, balance remaining in forfeiture account = ₹5,000

Step 1: Calculate amount received before forfeiture
Face value per share = ₹100
Called-up amount = ₹80
Unpaid = ₹20
Paid = ₹60 per share
Number of shares forfeited = 600
Amount forfeited = 600 × ₹60 = ₹36,000
Step 2: Calculate reissue value
Shares reissued @ ₹90 fully paid up
Discount on reissue = ₹10 (since face value is ₹100)
Total discount = 600 × ₹10 = ₹6,000
Step 3: Adjust discount out of forfeited amount
Amount left in Share Forfeiture Account = ₹36,000 - ₹6,000 = ₹30,000
This remaining balance is profit on reissue of forfeited shares and is transferred to Capital Reserve.
Capital Reserve = ₹36,000

Face value of share = ₹10
Premium = ₹2
Total issue price = ₹12
Called-up till forfeiture = ₹10 (including premium of ₹2)
Unpaid amount = First call ₹2
Paid-up amount = Application + Allotment + Premium = ₹10 – ₹2 = ₹8

Step 1: Forfeiture Entry
\begin{verbatim} Share Capital A/c Dr. 60,000 Securities Premium A/c Dr. 12,000 To Share Forfeiture A/c 48,000 To Calls in Arrears A/c 24,000 (Being 6,000 shares forfeited for non-payment of first call) \end{verbatim} Step 2: Reissue Entry (at ₹3 discount)
Reissue price = ₹10 – ₹3 = ₹7
\begin{verbatim} Bank A/c Dr. 42,000 Share Forfeiture A/c Dr. 18,000 To Share Capital A/c 60,000 (Being forfeited shares reissued at a discount of ₹3) \end{verbatim} Step 3: Transfer of Gain to Capital Reserve
Forfeiture amount = ₹48,000
Used for discount = ₹18,000
Balance = ₹30,000
\begin{verbatim} Share Forfeiture A/c Dr. 30,000 To Capital Reserve A/c 30,000 (Being profit on reissue transferred to capital reserve) \end{verbatim}