Basak Ltd. forfeited 20 shares of ₹ 10 each, ₹ 7 called-up on which the shareholders had paid application and allotment money of ₹ 5 per share

Record the Journal entries for forfeiture and reissue of shares in the following cases:

(i) Basak Ltd. forfeited 20 shares of ₹ 10 each, ₹ 7 called-up on which the shareholders had paid application and allotment money of ₹ 5 per share. Out of these, 15 shares were reissued to Naresh as ₹ 7 per share paid-up for ₹ 8 per share.

(ii) Y Ltd. forfeited 90 shares of ₹ 10 each, ₹ 8 called-up issued at a premium of ₹ 2 per share to ‘R’ for non-payment of allotment money of ₹ 5 per share (including premium). Out of these, 80 shares were reissued to Sanjay as ₹ 8 called-up for ₹ 10 per share.

[Ans.: Amont transferred to Capital Reserve – (i) ₹ 75; (ii) ₹ 400.]