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X Ltd. forfeited 100 shares of Rs. 10 each (Rs. 8 called-up) issued at a premium of Rs. 2 per share to Mr. R on which he had paid applications money of Rs. 5 per share, for non-payment of allotment money of Rs. 5 per share (including premium). Out of these, 70 shares were reissued to Mr . Sanjay as Rs. 8 called-up for Rs. 7 per share. Give necessary journal entries relating to forfeiture and reissue of shares.

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Working Note:

Capital Reserve = Balance in Share forfeiture Account of re- issued share x No. of shares re- issued = 70 x Rs.4 = Rs.280.

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