Y Ltd. forfeited 100 shares of Rs. 10 each issued at 20 premium (to be paid at the time of allotment) on which first call money of Rs. 3 was not received, the final call money of Rs. 2 is not yet called. These shares were subsequently re-issued at Rs. 7 per share as Rs. 8 paid-up. Give necessary journal entries regarding forfeiture and re-issue of shares.

Explanation

Capital Reserve Rs. 400.