Q.Sunshine Garments Ltd had forfeited 300 equity shares of ₹10 each, fully called-up, for non-payment of the final call of ₹3 per share; ₹7 per share (application and allotment) had already been received before forfeiture. These 300 shares were later reissued as fully paid-up at ₹8 per share. Pass journal entries for

The shares are first forfeited in the usual way (Share Capital debited ₹3,000, Final Call credited ₹900, Share Forfeiture credited ₹2,100); on reissue at ₹8 (a ₹2 discount on the fully paid-up ₹10), Share Forfeiture absorbs the ₹600 discount, and the ₹1,500 left over is capital profit, transferred to Capital Reserve. …

Part (a) — Forfeiture

• Called-up capital cancelled = 300 × ₹10 = ₹3,000 (fully called-up shares)
• Unpaid final call = 300 × ₹3 = ₹900
• Already received (application + allotment) = 300 × ₹7 = ₹2,100 — credited to Share Forfeiture

Part (b) — Reissue at ₹8 per share, fully paid-up (₹10)

Discount allowed on reissue = ₹10 − ₹8 = ₹2 per share × 300 = ₹600, well within the ₹2,100 available in Share Forfeiture for these shares.

Part (c) — Transfer of surplus to Capital Reserve

Balance left in Share Forfeiture relating to these 300 shares = ₹2,100 − ₹600 = ₹1,500.