Forfeiture of Shares Issued at Par :
JOURNAL ENTRIES
1. Where the unpaid calls have already been transferred to Calls-in-Arrear A/c and the respective call accounts have been closed:
Share Capital A/c Dr. (with the amount of called up value of shares forfeited i.e. no. of
shares forfeited x the called up value per share. with the amount
To Shares Forfeited A/c already paid-up by the shareholders on the shares forfeited.)
To Calls-in-Arrear A/c (with the amount of unpaid calls.)
OR
2. Where the unpaid calls have not been transferred to Calls-in-Arrear A/c and the respective call accounts are showing balances representing unpaid amounts:
Share Capital A/c Dr. (with the amount of called up value of shares forfeited i.e.,
no. of shares forfeited x the called up value per share.)
To Shares Forfeited A/c (with the amount already paid up by the shareholders on the shares forfeited.)
To Share Allotment A/c (with the amount failed on allotment, if any.)
To Share First Call A/c (with the amount failed on first call, if any.)
To Share Final Call A/c (with the amount failed on final call, if any.)