B Ltd. forfeited 500 shares of Rs. 10 each issued at 20% premium (to be paid at the time of allotment) for non-payment of the first call of Rs. 3 per share and final call of Rs. 2 per share. Out of these, 300 shares were re-issued as fully paid-up for Rs. 10 per share. Journalise.

Explanation

Capital Reserve Rs. 1,500.