(Partial Allotment of Shares and their Forfeiture and Reissue).
X applied for 2,000 shares of Rs. 10 each at a premium of Rs. 2.50 per share . He was allotted 1,000 shares. After having paid Rs. 3 per share on application, he did not pay the allotment money of Rs, 4.50 per share (including premium) and on his subsequent failure to pay the first call of Rs. 2 per share, his shares were forfeited. These shares were reissued @ Rs. 8 per share credited as fully paid-up.
Pass Journal entries to record forfeiture and reissue of shares.

Explanation

Working Note:
Calculation of the amount due but not paid on allotment:
`{:("(a)","Total No. of shares applied"," 2,000"),("(b)","Total money paid on application (2,000"xx"Rs. 3)","Rs.6,000"),("(c)","Excess application money [Rs. 6,000 - (1,000"xx"Rs. 3)]","Rs.3,000"),("(d)","Total amount due on allotment (1,000"xx"Rs. 4.50)","Rs. 4,500*"),("(e)","Amount due but not paid (Rs. 4,500-Rs. 3,000)","Rs. 1,500"):}`
*Out of Rs. 4,500, Rs. 2,000 are for Share Capital and Rs. 2,500 are for Securities Premium Reserve. Out of excess application money of Rs. 3,000, Rs. 2,000 are adjusted towards allotment as Share Capital and Rs. 1,000 are adjusted towards allotment as Securities Premium Reserve. Therefore, Securities Premium Reserve of Rs. 1,500 (i.e.,Rs. 2,500 - Rs. 1,000) is not received. Hence, Securities Premium Reserve is debited by Rs. 1,500.