Journalise the following: (a) Y Ltd. forfeited 400 shares of ₹ 100 each, issued at a premium of ₹ 5 per share (to be paid at the time of allotment) for non-payment of a first call of ₹ 20 per share

Journalise the following:

(a) Y Ltd. forfeited 400 shares of ₹ 100 each, issued at a premium of ₹ 5 per share (to be paid at the time of allotment) for non-payment of a first call of ₹ 20 per share. The second and final call of ₹ 20 has not yet been called. Out of these, 100 shares were re-issued as fully paid-up at the maximum rate of discount allowed by law.

(b) Y Ltd. forfeited 700 shares of ₹ 100 each, issued at a premium of ₹ 5 per share for non-payment of allotment money of ₹ 35 per share (including premium) and first call of ₹ 20 per share. The second and final call of ₹ 20 has not yet been called. 500 of these shares were re-issued as ₹ 80 paid-up for ₹ 92 per share.

[Ans. Capital Reserve (a) Nil; (b) ₹ 15,000.]