A Ltd forfeited 100 shares of ₹10 each issued at a Premium of ₹2, for non-payment of final call of ₹3. Securities Premium has been received. How will the forfeiture account be treated?

Credited by ₹700

The correct answer is option 4- Credited by ₹700.

If the Security Premium Reserve has been received and there is no requirement to write off the premium, then the forfeiture account would be treated as follows:
Share Capital A/c   (Called up amount 100 x 10)             Dr. ₹1,000
       To Share Forfeiture A/c   (Paid up amount 100 x 7)               ₹700
       To Share Calls A/c                   (100 x 3)                                ₹300