Give necessary journal entries for the forfeiture and re-issue of shares: (i) Gama Pvt. Ltd. forfeited - 9,000 shares of 10 each fully called up,…

(i) Journal Entries in the books of Gama Ltd. Date Particulars Dr. ₹ Cr. ₹ (a) Equity Share Capital A/c Dr. 90,000 To Equity Share Allotment money A/c (9000x 3) 27,000 To Equity Share Final Call A/c (9000x 4) 36,000 To Forfeited Shares A/c (9000x 3) 27,000 (Being the forfeiture of9000equity shares of 10each for non-payment of allotment money and final call, held by Varun as per Board’s resolution No…………….dated……………..) (b) Bank A/c (₹ 9,000 x 8) Dr. 72,000 Forfeited Shares A/c (₹ 9,000x 2) Dr. 18,000 To Equity Share Capital A/c 90,000 (Being the re-issue of9,000 forfeited shares @8 each as fully paid up to Katen as per Board’s resolution No……….dated……………..) (c) Forfeited Shares A/c Dr. 9,000 To Capital Reserve A/c 9,000 (Being the profit on re-issue, transferred to capital reserve) (ii) Journal Entries in the book of Mr. Y Particulars Dr. ₹ Cr. ₹ Preference Share Capital A/c (₹ 10,000 x 70) Dr. 7,00,000 To Preference Share Allotment A/c (₹ 10,000 x 20) 2,00,000 To Preference Share First Call A/c (₹ 10,000 x 20) 2,00,000 To Forfeited Share A/c 3,00,000 (Being the forfeiture of10,000 preference shares 70each being called up for non-payment of allotment and first call money as per Board’s Resolution No.... dated.....) Bank A/c (₹ 8,000 x 60) Dr. 4,80,000 Forfeited Shares A/c (₹ 8,000 x 10) Dr. 80,000 To Preference Share Capital A/c 5,60,000 (Being re-issue of8,000 shares at 60 per share paid-up as 70 as per Board’s Resolution No…..dated….) Forfeited Shares A/c Dr. 1,60,000 To Capital Reserve A/c (WN - 1) 1,60,000 (Being profit on re-issue transferred to Capital/Reserve) Working Note: Calculation of amount to be transferred to Capital Reserve Forfeited amount per share = 3,00,000/10,000 = 30 Loss on re-issue = 70 - 60 = 10 Surplus per share re-issued = 20 Transferred to capital Reserve 20x 8,000 = 1,60,000.