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What is the journal entry for forfeited shares


Posted- 1690 days ago
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Share capital

                                                                                                                                                              To Calls in arrears                 

                                                                                                                                                                                                                  To Share forfeiture

 

share capital a/c Dr.

        To share forfeiteda/c

        To calls in arrearsa/c

 

share capital a/c dr              amt

to calls in arrears a/c                amt

to share forfeiture a/c               amt

*here calls in arrears indicate all the amt tat is not paid!

 

 

share Capital a/c Dr

     To Calls in Arrears a/c (amount due not Yet Recieved)

     To Share Forfiture a/c (Amount Recieved from forfited shares / Profit on)

(Being Share Forfited due to non Payment of calls)

 

Share Capital A/C dr.

                  To Share Forfeiture a/c ( money received)

                  To Share aLLOTMENT a/c ( money not received)

                  tO SHARE Call  ( money not received)

 
1)AT PAR CONDITION SHARE CAPITAL A/C DR. TO SHARE ALLOTMENT A/C TO SHARE FIRST CALL A/C TO SHARE SECOND CALL A/C TO SHARE FORFEITURE A/C 2)AT DISCOUNT CONDITION SHARE CAPITAL A/C DR. TO DISCOUNT ON ISSUE OF SHARE A/C TO SHARE ALLOTMENT A/C TO SHARE FIRST CALL A/C TO SHARE SECOND CALL A/C TO SHARE FORFEITURE A/C 3) AT PREMIUM CONDITION(IF PREMIUM RECEIVED THEN PREMIUM FORGET THE PREMIUM) SHARE CAPITAL A/C DR. TO SHARE ALLOTMENT A/C TO SHARE FIRST CALL A/C TO SHARE SECOND CALL A/C TO SHARE FORFEITURE A/C 4) AT PREMIUM CONDITION (IF PREMIUM NOT RECEIVED THEN PREMIUM SHOW IN THE FORFEITURE ENTRY) SHARE CAPITAL A/C DR. SHARE PREMIUM A/C DR. TO SHARE ALLOTMENT A/C TO SHARE FIRST CALL A/C TO SHARE SECOND CALL A/C TO SHARE FORFEITURE A/C NOTE: THIS IS NOT NECESSARY THAT ALL THE AMOUNT WILL BE ARREAR BY SHAREHOLDER & THE ARREAR AMOUNT WILL BE SHOWN IN THE ENTRY OF FORFEITURE
 

when allottment is not recieved :

share capital a/c

to share allottment a/c  (amount not recieved)

to share __ call a/c  (amount not recieved)

to share forefieture a/c  (amount recieved)

 

when allottment is not recieved and shares were issued at premium :

share capital a/c

security premium a/c

to share allottment a/c  (amount not recieved)

to share __ call a/c  (amount not recieved)

to share forefieture a/c  (amount recieved)

 

when only call money has not been recieved :

share capital a/c

to share __ call a/c  (amount not recieved)

to share forefieture a/c  (amount recieved)