A Ltd. forfeited 360 shares of ₹10 each, ₹8 called-up, issued at a premium of ₹2 per share to Sanjay for non-payment of allotment money of ₹5 per share (including premium). Out of these, 320 shares were re-issued to Amit

In the books of A Ltd. Journal Entries Particulars Amt. (Dr.) Amt. (Cr.) 1. Share Capital A/c (360 × 8) Dr. 2,880 Securities Premium Reserve A/c (360 × 2) Dr. 720 To Share Allotment A/c (360 × 5) 1,800 To Share Forfeited A/c (360 × 5) 1,800 (Being 360 shares forfeited on which ₹8 is called - up, for non-payment of allotment money including premium) 2. Bank A/c (320 × 8) Dr. 2,560 Share Forfeited A/c (320 × 2) Dr. 640 To Share Capital A/c (320 × 10) 3,200 (Being 320 forfeited shares re-issued for ₹10 per share, ₹8 being called up) 3. Share Forfeited A/c Dr. 960 To Capital Reserves A/c 960 (Being forfeited amount on 320 shares transferred to Capital reserves account) Working Note: Amount to be transferred to capital reserve account is ₹960 and calculated as Forfeited amount of 320 share = 1800/360 × 320 = 1600 (-) Amount utilised in reissue = (640)