A company forfeited 100 equity shares of ₹10 each issued at a premium of 20% for non-payment of the final call of ₹5 including the premium. Show the journal entry for the forfeiture of shares.

Share Capital A/c                      Dr. ₹1000
Securities premium reserve A/c Dr. ₹200
      To Share Final Call A/c   ₹500
      To Share Forfeiture A/c   ₹700

Face value = ₹10
Premium is 20% means 10 x 20/100 = ₹2
Non payment of final call include premium of ₹2 means ₹3 is remaining amount.
As the securities premium reserve is not received so it will be debited.
Journal entry for forfeiture is-
Share Capital A/c   Dr. ₹1000 (100 x 10) Called up amount
Securities premium reserve Dr. ₹200 (100 x 2) premium cancelled
                To Share Final Call A/c   ₹500 (100 x 5) Amount not received
                To Share Forfeiture A/c  ₹700 (100 x 7) Amount received