PR Ltd. forfeited $\displaystyle 10,000$ equity shares of $\displaystyle 10$ each issued at a premium of $\displaystyle 4$ per share for non-payment of first call of $\displaystyle 3$ per share. The second and final call of $\displaystyle 2$ per share was not yet made. The forfeited shares were reissued at a discount of $\displaystyle 1$ per share fully paid up. Pass necessary journal entries for the above transactions in the books of PR Ltd. Also prepare Share Forfeiture Account.

In the books of PR Ltd. Journal Date Particulars L.F. Dr. Cr. Amount(₹) Amount(₹) Equity Share Capital A/c Dr. $\displaystyle 80,000$ To Shares Forfeited / Forfeiture A/c $\displaystyle 50,000$ To Equity Share First Call A/c / $\displaystyle 30,000$ To Calls in Arrears A/c ($\displaystyle 10,000$ equity shares, ₹$\displaystyle 8$ per share called up, forfeited for non-payment of first call of ₹$\displaystyle 3$ per share) Bank A/c Dr. $\displaystyle 90,000$ Shares Forfeited/ Forfeiture A/c Dr. $\displaystyle 10,000$ To Equity Share Capital A/c $\displaystyle 1,00,000$ ($\displaystyle 10,000$ equity shares re-issued at a discount of ₹$\displaystyle 1$ per share, fully paid-up) Shares Forfeited/ Forfeiture A/c Dr. $\displaystyle 40,000$ To Capital Reserve A/c $\displaystyle 40,000$ (Gain on re-issue of shares transferred to capital reserve) Dr. Share Forfeiture/ Forfeited A/c Cr. Particulars Amount(₹) Particulars Amount(₹) To Equity Share Capital A/c $\displaystyle 10,000$ By Equity Share Capital A/c $\displaystyle 50,000$ To Capital Reserve A/c $\displaystyle 40,000$ $\displaystyle 50,000$ $\displaystyle 50,000$