question_answer

                                                Complete the following journal entries. JOURNAL

Date	Particulars		LF	Amt (Dr)	Amt (Cr)
	Share Capital A/c \[\left( 600\times 8 \right)\]	Dr		4,800
	To Share First Call A/c \[\left( 600\times 3 \right)\]				1,800
	To ...............				....
	(Being 600 shares forfeited)
	..............	Dr		...
	...............	Dr		...
	To ...............				....
	(Being 200 shares re-issued at Rs. 7, Rs. 8 called-up)
	...............	Dr		...
	To..........				...
	(Being balance transferred to capital reserve)

 

Answer:

                                                                        JOURNAL

Date	Particulars		LF	Amt (Dr)	Amt (Cr)
	Share Capital A/c \[\left( 600\times 8 \right)\]	Dr		4,800
	To Share First Call A/c \[\left( 600\times 3 \right)\]				1,800
	To Share Forfeiture A/c \[\left( \mathbf{600\times 5} \right)\]				3,000
	(Being 600 shares forfeited)
	Bank A/c \[\left( \mathbf{200\times 7} \right)\]	Dr		1,400
	Share Forfeiture A/c	Dr		200
	To Share Capital A/c \[\left( \mathbf{200\times 8} \right)\]				1,600
	(Being 200 shares re-issued at Rs. 7, Rs. 8 called-up)
	Share Forfeiture A/c	Dr		800
	To Capital Reserve A/c				800
	(Being balance transferred to capital reserve)

Working Note

Profit on 600 shares = Rs. 3,000
Hence, profit on 200 shares \[=\frac{3,000}{600}\times 200\]	= 1,000
(-) Loss on re-issue \[=200\text{ }shares\times 1\]	= (200)
Amount transferred to capital reserve	Rs. 800