Read the passage given below carefully and answer the questions given below on the basis of the information.

Nidiya limited was incorporated on 1st April, 2017 with registered office in Mumbai. The capital clause of Memorandum of Association reflected a registered capital of 8,00,000 equity shares of  ₹10 each and 1,00,000 preference shares of  ₹50 each.
Since some large investments were required for building and machinery the company in consultation with vendors, Ms.VPS Enterprises, issued 1,00,000 equity shares and 20,000 preference shares at par to them in full consideration of assets acquired. Besides this the company issued 2,00,000 equity shares for cash at par payable as Rs 3 on application, 2 on allotment, 3 on first call and 2 on second call.
Till date second call has not yet been made and all the shareholders have paid except Mr. Ajay who did not pay allotment and calls on his 300 shares and Mr. Vipul who did not pay first call on his 200 shares. Shares of Mr. Ajay were then forfeited and out of them 100 shares were reissued at  ₹12 per share.

What is the amount of security premium reflected in the balance sheet at the end of the year?

₹400

The correct answer is option 3- ₹400.

Journal Entry on Forfeiture of 300 shares of Ajay will be:
Share Capital A/c    Dr 2,400 (300*8)
    To, Share forfeiture A/c                  900 (300*3)
    To Share Allotment A/c                   600 (300*2)
    To Share First Call A/c                    900 (300*3)

Journal Entry on reissue of 100 shares of Ajay Will be
Bank A/c Dr 1200 (100*12)
    To Share Capital A/c         800 (100*8 being the share called up value)
    To Share Premium A/c      400 (₹4 will be securities premium)

*Final call of ₹2 per share has not been made, means only ₹8 have been called up by the company. Therefore, when shares are reissued after forfeiture, any amount received on reissue that is in excess of the amount previously called-up is credited to the "securities premium reserve account". So, here ₹4 (12-8) per share will be securities premium reserve.
100 Shares X 4 = ₹400.

*If the question is- Shares of Mr. Ajay were then forfeited and out of them 100 shares were reissued at Rs.12 per share as fullypaid. then ₹10 will be face value and ₹2 will be securities premium.