X Ltd. forfeited 100 shares of Rs. 10 each (Rs. 8 called-up) issued at a premium of Rs. 2 per share to Mr. R, on which he had paid application money of Rs. 5 per share, for non-payment of allotment money of Rs. 5 per share (including premium) . Out of these, 70 shares were reissued to Mr. Sanjay as Rs. 8 called-up for Rs. 7 per share. Give necessary Journal entries relating to forfeiture and reissue of shares.

Answer

Capital Reserve-Rs. 280.