Sunena, a shareholder holding 500 shares of ₹10 each, did not pay the allotment money of ₹4 per share (including a premium of ₹2) and the first and final call of ₹3. Her shares were forfeited after the first and final call. Choose the correct journal entry for forfeiture of the shares.

Share Capital A/c            Dr.    5,000
Securities Premium A/c   Dr.     1,000
          To Share Allotment A/c                2,000
          To Share first and final Call A/c     1,500
          To Share Forfeiture A/c                2,500

The correct answer is option 4-
Share Capital A/c            Dr.    5,000
Securities Premium A/c   Dr.     1,000
          To Share Allotment A/c                2,000
          To Share first and final Call A/c     1,500
          To Share Forfeiture A/c                2,500

500 shares of ₹10 each,

Not pay the allotment money of ₹4 per share (including a premium of ₹2) and the first and final call of ₹3. 

Called up amount = 500 shares x 10
                           = 5,000

Securities premium = 500 shares x 2
                             = 1,000

Share allotment amount = 500 shares x 4
                                    = 2,000

Share first and final call = 500 shares x 3
                                   = 1,500

Share forfeiture amount is the received amount. So, 500 shares x 5
                                                                       = 2,500

So, the journal entry for the forfeiture of shares is as follows-
Share Capital A/c            Dr.    5,000
Securities Premium A/c   Dr.     1,000
          To Share Allotment A/c                2,000
          To Share first and final Call A/c     1,500
          To Share Forfeiture A/c                2,500