X Ltd. forfeited 500 shares of ₹ 100 each, ₹ 75 called-up, issued at 10% premium (to be paid at the time of allotment) for non-payment of a first call of ₹ 20 per share

Give journal entries for forfeiture and re-issue of shares:

(a) X Ltd. forfeited 500 shares of ₹ 100 each, ₹ 75 called-up, issued at 10% premium (to be paid at the time of allotment) for non-payment of a first call of ₹ 20 per share. Out of these, 200 shares were re-issued as ₹ 75 paid-up for ₹ 60 per share.

(b) X Ltd. forfeited 300 shares of ₹ 100 each, ₹ 75 called-up, issued at 10% premium (to be paid at the time of allotment) for non-payment of allotment money of ₹ 30 per share (including premium) and first call of ₹ 20 per share.

Out of these, 100 shares were re-issued as fully paid-up in such a way that ₹ 3,100 were transferred to Capital Reserve.

[Ans. (a) Capital Reserve ₹ 8,000; (b) Re-issue Price ₹ 96 per share.