(i) R.P. Ltd. forfeited 1,500 shares of Rahim of Rs. 10 each issued at a premium of Rs. 3 per share for non-payment of allotment and first call money. Rahim had applied for 3,000 shares. On these shares, amount was payable as follows:

On application – Rs. 3 per share

On allotment (including premium) – Rs. 5 per share

On first call – Rs. 3 per share

On final call – Balance

Final call has not been called up. 1,000 of the forfeited shares were reissued for Rs. 8,500 as fully paid-up.

Record the necessary journal entries for the above transactions in the books of R.P. Ltd.

(ii) Max Ltd. forfeited 500 shares of Rs. 100 each for non-payment of first call of Rs. 20 per share and final call of Rs. 25 per share. 250 of these shares were re-issued at Rs. 50 per share fully paid-up.

Pass the necessary journal entries in the books of Max Ltd. for forfeiture and re-issue of shares. Also prepare the Share Forfeiture Account. 

Marks-8 (4+4), CBSE:2019-20/Main/01/Q-22*