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Lily Ltd. forfeited 2,000 equity shares of ₹ 10 each for non-payment of first and final call of ₹ 2 per share. 750 of the forfeited shares were reissued to Ashok for ₹ 10,000 as fully paid-up. The remaining shares were reissued to Sudha at ₹ 9 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Lily Ltd.
Lily Ltd. forfeited 2,000 equity shares of ₹ 10 each for non-payment of first and final call of ₹ 2 per share. 750 of the forfeited shares were reissued to Ashok for ₹ 10,000 as fully paid-up. The remaining shares were reissued to Sudha at ₹ 9 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of Lily Ltd.
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When forfeited shares are re-issued, any discount is debited to Share Forfeiture A/c. If re-issued at premium, Securities Premium is credited. The remaining balance in Share Forfeiture A/c after all re-issues is transferred to Capital Reserve.
Updated On: Feb 26, 2026
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