(Forfeiture of Shares issued at Premium and Reissued at Discount).
A Ltd. forfeited 600 Equity Shares of Rs. 10 each issued at a premium of 20% to Ram who had applied for 720 Equity Shares, for non-payment of allotment money of Rs. 5 per equity share (including premium) and the first and final call of Rs. 5 per equity share. Out of these, 200 Equity Shares were reissued to Shyam credited as fully paid for Rs. 9 per equity share. As per the terms of issue, company was to retain the excess application money to adjust against calls.
Pass Journal entries to record forfeiture and reissue of shares.

Explanation

`{:(1.,"Calculation of the amount due but not paid as allotment:"," Rs."),(,"(a) Total No. of shares applied = 720",),(,"(b) Total money paid on application (720"xx"Rs. 2)"," 1,440"),(,"(c) Excess application money [Rs. 1,440-(600"xx"Rs. 2)]"," 240"),(,"(d) Total amount due on allotment (600"xx"Rs. 5)"," 3,000"),(,"(e) Amount due but not paid on allotment (Rs. 3,000-Rs. 240)"," 2,760"),(2.,"Amount transferred to Capital Reserve:",),(,"Amount forfeited on 600 shares",ul(ul(" "1,440))),(,.:." Amount forfeited on 200 shares=Rs. 1,440/600"xx200," 480"),(,"Less: Discount allowed on 200 shares reissued"," 200"),(,"Gain on reissue to be transferred to Capital Reserve",ulbar(ul(" "280))),(,,):}`