A limited company forfeited 400 shares of Mr. X, who had applied for 600 shares on account of non-payment of allotment money Rs. 3 + Rs. 2.50 (premium) and first call Rs. 2. Only Rs. 4 per share was received with application. Out of these, 200 shares were re-issued to Mr. Y at Rs. 8 per share, Rs. 9 paid -up. Give journal entries relating to forfeiture and re-issue.

Explanation

Capital Reserve Rs. 1,000.