Give necessary journal entries for the forfeiture and re-issue of shares: (i) Sigma Ltd. forfeited 27,000 shares of ₹ 10 each fully called up, held…

Journal Entries in the books of Sigma Ltd. Date Dr. ₹ Cr. ₹ (a) Equity Share Capital A/c Dr. 2,70,000 To Equity Share Allotment money A/c (27000 x ₹ 3) 81,000 To Equity Share Final Call A/c (27,000 x ₹ 4) 1,08,000 To Forfeited Shares A/c (27,000 x ₹ 3) 81,000 (Being the forfeiture of 27,000 equity shares of ₹ 10 each for non-payment of allotment money and final call, held by Sameer as per Board's resolution No....dated....) (b) Bank A/c (27,000 x 8) Dr. 2,16,000 Forfeited Shares A/c (27,000x 2) Dr. 54,000 To Equity Share Capital A/c 2,70,000 (Being the re-issue of 27,000 forfeited shares @ 8 each as fully paid up to Arjun as per Board's resolution No. dated....) (c) Forfeited Shares A/c Dr. 27,000 To Capital Reserve A/c 27,000 (Being the profit on re-issue, transferred to capital reserve) Journal Entries in the book of Mr. Umesh 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 of 10,000 preference shares ₹ 70 each 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 of 8,000 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 (Refer WN) 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 ₹ 20 x 8,000 = ₹ 1,60,000