Partial Reissue :

When all forfeited shares are not reissued then only profit made on such reissued shares is transferred to capital reserve. The amount
relating to that part of shares that are not reissued will remain in the shares forfeited account which will be transferred to the liability side of the Balance Sheet.

Illustration : 

The Directors of a company forfeited 100 equity shares of Rs.10 each on which the first call of Rs.3 and final call of Rs.3 had not been
paid. Of these 40 shares were reissued upon payment of Rs.300. Journalise the transactions of forfeiture and reissue of shares.

Solution:

 Journal Entries

Date	Particulars	L.F.	Debit Rs.	Credit Rs.
	Share Capital A/c (100 x Rs.10)                         Dr.		1,000
	To Forfeited Shares A/c (100 x 4)			400
	To First Call A/c. (100 x 3)			300
	To Final Call A/c. (100 x 3)			300
	(100 shares of Rs.10 each forfeited for non-payment of calls)
	Bank A/c (40 x Rs.7.50)                                         Dr.		300
	Forfeited Shares A/c (40 x Rs.2.50)                Dr.		100
	To Share Capital A/c.			400
	(40 of the forfeited shares reissued at Rs.300)
	Forfeited Shares A/c.                                           Dr.		60
	To Capital Reserve A/c.			60
	(Profit on reissue transferred to Capital Reserve Account)

 

Note : Calculation of profit on reissue.

 

Note : The balance in the forfeited shares account Rs.240 will be shown as an addition to paid-up capital in the liabilities side of the Balance Sheet.

Ledger Accounts
Dr.                                                                                                 Forfeited Shares Account                                                                                                 Cr.

Particulars	Rs.	Particulars	Rs.
To Share Capital A/c	100	By Share capital A/c	40 0
To Capital Reserve A/c	60
To Balance c/d	240
	400		400
		By Balance b/d	240