Campa Ltd. issued 4,00,000 shares of ₹50 each at a premium of ₹15 per share. Application for 4,50,000 shares was received. The amount was payable as follows: On Application ₹15 On Allotment ₹16 (including premium ₹6) On

Campa Ltd. Journal Entries Date Particulars Amount (Dr.) Amount (Cr.) Share Capital A/c (6000 × 40) Dr. 240,000 Securities Premium A/c (6000 × 11) Dr. 66,000 To Shares Forfeiture A/c (6000 × 15) 90,000 To Share Allotment A/c (6000 × 16) 96,000 To Share First Call A/c (6000 × 20) 120,000 (6000 shares of Alpha were forfeited for non-payment of allotment and first call) Share Capital A/c (4000 × 40) Dr. 160,000 Securities Premium A/c (4000 × 5) Dr. 20,000 To Shares Forfeiture A/c (4000 × 25) 100,000 To Share First Call A/c (4000 × 20) 80,000 (4000 shares of Beta were forfeited for non-payment of first call) Share Capital Account (15000 × 50) Dr. 750,000 Securities Premium Account (15000 × 4) Dr. 60,000 To Shares Forfeiture A/c (15000 × 40) 600,000 To Share Final Call A/c (15000 × 14) 210,000 (15000 shares of Gama were forfeited for non-payment of final call) Bank A/c (5000 × 42) Dr. 210,000 Share Forfeiture A/c (5000 × 8) Dr. 40,000 To Share Capital A/c (5000 × 50) 250,000 (Reissue of 5000 shares of ₹50 each, issued as fully paid up at a discount ₹8 per share) Share Forfeiture A/c Dr. 55,000 To Capital Reserve 55,000 (Profit on reissue of 5000 forfeited shares transferred to capital reserve) Working Note: Calculation of the amount transferred to Capital Reserve 50% of Alpha's forfeited share (50% of 90,000) = ₹45,000 50% of Beta's forfeited share (50% of 1,00,000) = ₹50,000 Total Forfeited Amount for Reissued Shares = ₹95,000 Less: loss on reissue = ₹40,000 Capital Reserve = ₹55,000