The solution to Question number 69 of the Accounting for Share Capital chapter of TS Grewal Book 2025-26 Edition.


R.P Ltd forfeited 1,500 shares of Rahim of ₹ 10 each issued at a premium of ₹ 3 per share for non-payment of allotment and first call money. Rahim had applied for 3,000 shares. On these shares, amount was payable as follows:

On Application ₹ 3 per share
On Allotment (including premium) ₹ 5 per share
On First Call ₹ 3 per share
On Final Call Balance

Final call has not been called up, 1,000 of the forfeited shares were reissued for ₹ 8,500 as fully paid-up. Record the necessary Journal entries for the above transactions in the books of R.P Ltd.
[Ans.: Capital Reserve – ₹ 3,500.]

Solution:-