It is about Problem on issue, forfeiture and re issue of shares according to Indian Companies Act, 2013

1. 1
Company Accounts
Share Capital

2. 2
1) Murali Krishna Ltd. Invited applications for 50,000
shares Rs.10 each at a premium of Rs 2 per share. The
amount on shares was payable as
Rs.5 on application,
Rs.4 on Allotment (including premium)
Balance on first and final call.
Application received for 82,500 shares and 20,000
Applications were totally rejected and money refunded.
Remaining applicants were alloted on pro-rata basis. Excess
application money was to be adjusted against allotment.
Nishant
who had applied for 1,250 shares failed to pay the amount
due on allotment and call. The Company forfeited his shares
& reissued 500 shares at Rs.11 per share as fully paid. Pass

3. 3
Application
Date Particulars L.F Debit Credit
1
2
Bank A/c Dr. (82,500 X 5)
To Share Application A/c
(Being Share Application money
received)
4,12,500
4,12,500
4,12,500
2,50,000
62,500
1,00,000
Share Application A/c Dr.
To Share Capital A/c (50,000 X
5)
To Share Allotment A/c
(12,500 X 5)
To Bank A/c (20,000 X 5)
(Being share allotted and amount
adjusted)

4. 4
Allotment
Date Particulars L.F Debit Credit
3
4
Share Allotment A/c Dr. (50,000 X 4)
To Share Capital A/c (50,000 X
2)
To Securities Premium A/c
(50,000 X 2)
(Being Allotment money due )
2,00,000
1,34,750
2,750
1,00,000
1,00,000
1,37,500
Bank A/c Dr.
Calls-in-Arrears A/c Dr.
To Share Allotment A/c
(Being Share Allotment money
received except 1,000 Shares)

5. 5
First CallFirst Call
Date Particulars L.F Debit
(Rs.)
Credit
(Rs.)
5
6
Share First and Final Call A/c Dr.
To Share Capital A/c (50,000 X 3)
(Being Share First and Final Call
money due)
1,50,000
1,47,000
3,000
1,50,000
1,50,000
Bank A/c Dr. (49,000 X 3)
Calls-in-Arrears A/c Dr. (1,000 X 3)
To Share First and Final Call A/c
(Being Share First and Final Call
money received except 1,000 Shares)

6. 6
Forfeiture and ReissueForfeiture and Reissue
Date Particulars L.F Debit Credit
7
8
Share Capital A/c Dr. (1,000 X 10)
Securities Premium A/c Dr. (1,000 X 2)
To Share Forfeiture A/c
To Calls-in-Arrears A/c (2,750 +
3,000)
(Being shares are forfeited for non-
payment of Allotment and First Call)
10,000
2,000
5,500
6,250
5,750
5,000
500
Bank A/c Dr. (500 X 11)
To Share Capital A/c (500 X 10)
To Securities Premium A/c (500 X
1)
(Being Forfeited Shares are Re-issue at

7. 7
Capital ReserveCapital Reserve
Date Particulars L.F Debit
(Rs.)
Credit
(Rs.)
9 Share Forfeiture A/c Dr.
To Capital Reserve A/c
(Being balance in Share Forfeiture A/c
transfer to Capital Reserve on 500 Shares)
Note:
Application time 1,250 x 5 = 6250 we got,
but we alloted 1,000 shares and forfeited.
Now we re-issue 500 Shares. So half of the
forfeited amount transfer to Capital
Reserve.
3,125
3,125

8. 8
N. Bala Murali
Krishna