(Forfeiture of Shares which were Issued at Premium, Different Cases).
SRCC Ltd. issued 10,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share . The amount is payable as:
`{:("On Application",-,"Rs.4 per share,"),("On Allotment",-,"Rs. 5 per share (including premium),"),("On First amd Final Call",-,"Rs. 3 per share".),(,,):}`
Gaurav was allotted 200 shares. Give Journal entry relating to the 'Forfeiture of Shares' in each of the following alternative cases:
Case I : If Gaurav failed to pay allotment money and his shares were forfeited before making the first call and final call.
Case II : If Gaurav failed to pay allotment money and on his subsequent failure to pay the first and final call, his shares were forfeited.
Case III: If Gaurav failed to pay the first and final call and his shares were forfeited.

Explanation

Notes:
Case I: `*` Equity Share Capital A/c is debited with Rs. 1,400 (i.e., 200 shares `xx` Rs. 7 per share) as only Rs. 7 (i.e., Rs. 4 + Rs. 3) per share has been called, when the shares are forfeited.
`*` Securities Premium Reserve A/c is debited with Rs. 400 as securities premium has not been received.
`*` Forfeited Shares A/c is credited with Rs. 800 as Rs.4 per share is received on application.
`*`Equity Shares Allotment A/c is credited with Rs. 1,000 (i.e., 200 shares `xx` Rs. 5 per share) as Rs. 5 (including premium) per share is due on allotment.
Case II: `*` Equity Share Capital A/c is debited with Rs. 2,000 as firm had called-up entire amount, when shares are forfeited.
`*` Securities Premium Reserve A/c is debited with Rs. 400 as Securities Premium has not been received.
`*`Forfeited Shares A/c is credited with Rs. 800 as Rs. 4 per share is received on application.
`*` Equity Shares Allotment A/c is credited with Rs. 1,000 as Rs. 5 (including premium) per share is due on allotment.
`*` Equity Shares First and Final Call A/c is credited with Rs. 600 as Rs. 3 per share is due on First and Final Call.
Case III. `*` Equity Share Capital A/c is debited with Rs. 2,000 as company has called-up entire amount, when shares are forfeited.
`*` Firfeited Shares A/c is credited with Rs. 1,400 (i.e., 200 shares `xx` Rs.) as Rs. 4 per share is received on application and Rs. 3 (excluding premium) is received on allotment. We know that, if securities premium has been received on Forfeited Shares, then it is not transferred to Forfeited Shares A/c because of restrictions imposed by Section 52(2) of the Companies Act, 2013.
`*` Equity Shares First and Final Call A/c is credited with Rs. 600 as Rs. 3 per share is due on first and final call but not received.