Dr. 945 Date Particulars L.F. Dr. (3) Cr. (3) Share Capital A/C Dr. 75,000 Securities Premium Reserve A/C Dr. 45,000 To Share First Call A/C 52,500 To Share Second and Final Call A/C 22,500 To Share Forfeiture A/C 45,000 (Forfeiture of 750 shares) Bank A/C 1,00,000 To Share Capital A/C 50,000 To Securities Premium Reserve A/c 50,000 (Re-issue of 500 shares @ 200 each) Share Forfeiture A/c(1) Dr. 30,000 To Capital Reserve A/C 30,000 (Profit on 500 re-issued shares transferred to Capital Reserve) Note (1): As Profit on 750 shares 345,000 Therefore, profit on 500 shares = (45,000 + 750) x 500 = 230,000 Since there is no loss on re-issue, the full amount of 30,000 will be transferred To Capital Reserve. Over-Subscription and Forfeiture of Shares Q. 56. X Ltd. offered 25,000 shares of 100 each payable as 25 on application, 20 on allotment, 30 on first call and the balance on final call. Applications were received for 40,000 shares out of which shares were allotted to the applicants for 35,000 shares on a pro-rata basis. All shareholders paid the allotment money excepting Mr. Gopal who was allotted 500 shares. These shares were forfeited immediately. The first call was made thereafter. The forfeited shares were re-issued @ 78 per share 75 paid up. The final call was not made. Prepare Cash Book and pass journal entries