Corporate Accounting
Share Forfeiture
Sure, here are the journal entries for share forfeiture in corporate accounting:
Forfeiture of Shares Issued at Par
 Debit: Share Capital A/c

Credit: Shares Allotment Amount or Shares Call Account
Forfeiture of Shares Issued at Premium
 Debit: Share Capital A/c

Credit: Security Premium A/c

Credit: Shares Allotment Amount or Shares Call Account
Reissue of Forfeited Shares
 Debit: Bank A/c

Credit: Share Capital A/c
Transfer of Balance Share Forfeiture to Capital Reserve
 Debit: Share Forfeiture A/c

Credit: Capital Reserve A/c
Here are some additional details about each journal entry:

Forfeiture of Shares Issued at Par
When shares are issued at par, the amount forfeited is equal to the amount called-up on
the shares. The Share Capital Account is debited with the amount called-up, and the
Shares Allotment Amount or Shares Call Account is credited with the amount called-up.

Forfeiture of Shares Issued at Premium
When shares are issued at premium, the amount forfeited is equal to the amount calledup plus the amount of the premium. The Share Capital Account is debited with the
amount called-up plus the amount of the premium, the Security Premium A/c is credited
with the amount of the premium, and the Shares Allotment Amount or Shares Call
Account is credited with the amount called-up.

Reissue of Forfeited Shares
When forfeited shares are reissued, the amount received from the new shareholder is
credited to the Share Capital Account.

Transfer of Balance Share Forfeiture to Capital Reserve
If the balance in the Share Forfeiture Account is not needed to cover any future calls on
the shares, it can be transferred to the Capital Reserve Account. This is done by
debiting the Share Forfeiture Account and crediting the Capital Reserve Account.