Sunita holds 200 shares of ₹ 10 each on which she has paid ₹ 1 and ₹ 2 per share on application and allotment respectively.

Sunita holds 200 shares of ₹ 10 each on which she has paid ₹ 1 and ₹ 2 per share on application and allotment respectively.

Teena holds 300 sahres of ₹ 10 each and has paid ₹ 1 on application, ₹ 2 on allotment and ₹ 3 on first call.

They all fail to pay their arrears and the second call of ₹ 4 per share. Shares are forfeited and subsequently reissued @ ₹ 11 per share as fully paid-up.

Journalise the above.

[Ans.: Capital Reserve – ₹ 2,500.]

[Hint: As share have been reissued at premium, discount allowed on reissue is Nil. Thus, total amount of ₹ 2,500 credited to Forfeited Shares Account will be transferred to Capital Reserve.]