4. Mr. X who applied for 5000 shares and Loss Appropriation Account. 4 a premium of Rs. 2 each. Mr. X paid appli HCL Ltd. of Rs. 10 each, issued at Rs. 6 (including Premium as allotment) but fion money of Rs. 3 per share and share. Company decided to forfeit these shares to pay the balance amount of at \( 20 \% \) discount. Show necessary Journal entries for forfeiture and reissue of shares in the books of HCL Ltd.

Question

Mr. X who applied for 5000 shares of HCL Ltd. of Rs. 10 each, issued at a premium of Rs. 2 each. Mr. X paid application money of Rs. 3 per share and  Rs. 6 (including Premium as allotment) but failed to pay the balance amount of share. Company decided to forfeit these shares and reissue 3/5 of such shares at 20% discount.

Show necessary Journal entries for forfeiture and reissue of shares in the books of HCL Ltd.