The directors of a company resolved that 400 shares of ₹ 100 each be forfeited for non-payment of final call of ₹ 30 per share. Out of these, 300 shares were reissued at ₹ 60 per share. What will be the balance in Shares Forfeited A/c ?

₹ 9,000

The correct answer is Option 1 - ₹ 9,000.

On forfeiture of shares amount received is credited in the share forfeiture account.
Journal entry on forfeiture of shares-
Share Capital A/c Dr.    40000 (400 x 100) called up amount
   To share forfeiture A/c      28000 (400 x 70) received amount
   To share final call A/c       12000 (400 x 30) Not received amount

Journal entry for reissue of shares-
Bank A/c                 Dr. (300x 60) ₹18000
Share forfeiture A/c Dr. (300 x 40) ₹12000
       To Share Capital A/c (300 x 100)     ₹30000

Share forfeiture balance on 400 shares = 28000
Share forfeiture balance on 300 shares = 28000/400 x 300
                                                         = 21000
Share forfeiture Balance used in reissue = 12000
Remaining balance under Share forfeiture = 21000 - 12000
                            = 9000
This balance of Rs 9,000 of Share forfeiture will be transferred to capital reserve.