The solution to Question number 73 of the Accounting for Share Capital chapter of TS Grewal Book 2025-26 Edition
Show the forfeiture and reissue entries under each of the following cases:
(i) KBC Ltd. foreited 300 shares of ₹ 10 each, ₹ 8 called-up held by Amit for non-payment of second call money of ₹ 3 per share. These shares were reissued to Zoly for ₹ 10 per share as fully paid-up.
(ii) KK Ltd. forfeited 400 shares of ₹ 10 each, fully called-up, held by Bhawna for non-payment of final call money of ₹ 4 per share. These shares were reissued to Tarun at ₹ 12 per share as fully paid-up.
(iii) Light Ltd. forfeited 250 shares of ₹ 10 each, fully called-up, held by Chetan for non-payment of allotment money of ₹ 3 per share and first and final call money of ₹ 4 per share. These shares were reissued @ ₹ 8 per share as fully paid-up to Prem.
[Ans.: Capital Reserve – (i) ₹ 1,500; (ii) ₹ 2,400; (iii) ₹ 250.]
Solution:-
