Prayuj Ltd. forfeited 2,000 shares of Rs.  10 each, fully called up, on which they had received only Rs.  14,000. 50 of the forfeited shares were reissued for Rs.  9 per share fully paid up.

Pass necessary journal entries for forfeiture and re-issue of shares. Also prepare share forfeited account.

Marks-4, CBSE:2016-17/Comp-DL/Q-12