Solution:

Balance in Share Forfeited A/C before reissue:
- Number of shares forfeited = 300
- Face value of each share = ₹10
- Amount called up per share = ₹10
- Total amount forfeited = 300 x ₹10 = ₹3,000

Reissue of forfeited shares:
- Number of shares reissued = 125
- Reissue price per share = ₹9
- Total amount received on reissue = 125 x ₹9 = ₹1,125

Balance in Share Forfeited A/C after reissue:
- Number of shares still forfeited = 300 - 125 = 175
- Face value of each share = ₹10
- Amount called up per share = ₹10
- Total amount still forfeited = 175 x ₹10 = ₹1,750

Explanation:

- Alok Ltd. forfeited 300 shares of ₹10 each fully called up held by Ram for non-payment of allotment money. This means that Ram had already paid the face value of the shares, but had not paid the allotment money that was due.
- The company then reissued these forfeited shares to Shyam for ₹9 per share fully paid. This means that Shyam paid the entire amount due on the shares, including the face value and any other amounts due.
- The balance in the Share Forfeited A/C before reissue was the total amount forfeited by Ram, which was ₹3,000. This amount represents the face value of the shares that Ram had already paid, but which were forfeited due to his failure to pay the allotment money.
- After reissuing 125 shares to Shyam, the balance in the Share Forfeited A/C was reduced to ₹1,750. This amount represents the face value of the shares that are still forfeited, as Shyam has paid the entire amount due on the shares that were reissued to him.
- The company can use the balance in the Share Forfeited A/C to offset any amounts due from Ram, such as the allotment money that he failed to pay, or any other amounts that he owes to the company. If there is any balance remaining in the Share Forfeited A/C after all amounts due are settled, this balance can be transferred to the General Reserve or the Capital Reserve.

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