Question 7

Alwani company Ltd. forfeited 500 shares of SR 10 each, fully called up on which SR. 6 have been received and final call of SR. 4 per share remains unpaid. These shares were later on reissued for SR. 8 per share fully paid up.

The journal entry for recording the forfeited shares is:

A.

No	Particulares	Dr	Cr
c	Share Application A/c To Share Forfeited A/c To Share First Call A/c (Forfeiture of 500 shares ).	5,000	3,000 2,000

B.

No	Particulares	Dr	Cr
d	Bank A/c To Share Forfeited A/c (Forfeiture of 500 shares ).	5,000	5,000

C.

No	Particulares	Dr	Cr
A	Share Capital A/c To Share Forfeited A/c	5,000	5,000

D.

No	Particulares	Dr	Cr
b	Share Capital A/c To Share Forfeited A/c To Share First Call A/c (Forfeiture of 500 shares ).	5,000	3,000 2,000