Think of a journal entry as a news report of what happened to the money. On forfeiture of shares , three things happen at once: capital is reduced, unpaid money is written off, and money already received is parked in a special account. So our entry has one debit and two credits.
Swathika B is an MBA graduate in Finance & Business Analytics , the founder of The Commerce Lab. With a strong academic foundation in B.Com BFSI and hands-on experience in financial analysis, data analytics, and business studies, she created this platform to make Commerce and Accountancy simple, practical, and exam-ready for students across India.