The director of Poly Plastic Limited resolved that 200 equity shares of ₹100 each be forfeited for non-payment of the second and final call of ₹30 per share. Out of these, 150 shares were re-issued at ₹60 per share to Mohit. Journal entry for creating capital reserve will be:

Shares Forfeiture A/c   Dr.   ₹4,500
       To Capital Reserve A/c         ₹4,500

The correct answer is option 3-
Shares Forfeiture A/c   Dr.   ₹4,500
       To Capital Reserve A/c         ₹4,500

Journal entry on forfeiture of shares is-
Share Capital A/c Dr.           20,000 (200 x 100)
          To Shares Forfeiture A/c                  14,000 (200 x 70)
          To Share Second and Final Call A/c   6,000 (200 x 30)
(200 shares forfeited)

Journal entry on reissue of shares is-
Bank A/c   Dr.               9,000 (150 x 60)
Share Forfeiture A/c      6,000 (150 x 40)
      To Share Capital A/c           15,000 (150 x 100)
(Reissue of 150 shares)

Amount related to 200 shares in share forfeiture A/c =  14,000
Amount related to 150 shares in share forfeiture A/c = 14,000/200 x 150
                                                                             = 10,500

Amount used in reissue = 6,000
Remaining amount in share forfeiture account related to 150 shares = 10,500 - 6,000
                                                                                                   = 4,500

This 4,500 is transferred to capital reserve as it is the profit for the company. The journal entry for this-
Shares Forfeiture A/c   Dr.   ₹4,500
       To Capital Reserve A/c         ₹4,500