Gaurav applied for 5,000 shares of Rs. 10 each at a premium of 2.50 per share. But he was allotted only 2,500 shares on pro rata basis. After having paid Rs. 3 per share on application, he did not pay allotment money of Rs. 4.50 pe share (including premium) and on his subsequent failure to pay the first call of Rs. 2 per share, his shares were forfeited . These shares were reissued at the rate of Rs. 8 per share credited as fully paid. Pass Journal entries to record the forfeiture and reissue of shares.

Gaurav applied for 5,000 shares of Rs. 10 each at a premium of 2.50 pe

1.	Gaurav applied for 5,000 shares of Rs. 10 each at a premium of 2.50 per share. But he was allotted only 2,500 shares on pro rata basis. After having paid Rs. 3 per share on application, he did not pay allotment money of Rs. 4.50 pe share (including premium) and on his subsequent failure to pay the first call of Rs. 2 per share, his shares were forfeited . These shares were reissued at the rate of Rs. 8 per share credited as fully paid. Pass Journal entries to record the forfeiture and reissue of shares.
Answer» Correct Answer - Allotment money due but not received-Rs. 3,750; Forfeited Shares A/c Credited-Rs. 12,500; Capital Reserve-Rs. 7,500.

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