**Journal Entry for Forfeiture of Shares and Reissue**

When a shareholder fails to pay the allotment and call money on shares, the company has the right to forfeit those shares. The forfeited shares can be reissued later at a different price. Let's break down the journal entry for the forfeiture of shares and subsequent reissue.

**1. Forfeiture of Shares:**

When shares are forfeited, the shareholder's account needs to be debited with the amount already paid on those shares. The following journal entry is made:

**Debit:** Shareholder's Account (number of shares forfeited x amount paid on application)
**Debit:** Share Forfeiture Account (amount originally received on shares)
**Credit:** Share Capital Account (number of shares forfeited x face value per share)
**Credit:** Share Premium Account (number of shares forfeited x premium per share)

In this case, 100 shares were forfeited with a face value of Rs.10 each and a premium of Rs.2 per share. The shareholders paid Rs.4 on application, so the journal entry would be:

**Debit:** Shareholder's Account - Rs.400 (100 shares x Rs.4)
**Debit:** Share Forfeiture Account - Rs.600 (100 shares x Rs.6)
**Credit:** Share Capital Account - Rs.1,000 (100 shares x Rs.10)
**Credit:** Share Premium Account - Rs.200 (100 shares x Rs.2)

**2. Reissue of Forfeited Shares:**

The forfeited shares can be reissued at a different price. In this case, the reissue price is Rs.11 per share as fully paid up. The following journal entry is made:

**Debit:** Bank Account (number of reissued shares x reissue price)
**Debit:** Share Forfeiture Account (amount originally received on shares)
**Credit:** Share Capital Account (number of reissued shares x face value per share)
**Credit:** Share Premium Account (number of reissued shares x premium per share)

In this case, the 100 forfeited shares are being reissued at Rs.11 per share. The journal entry would be:

**Debit:** Bank Account - Rs.1,100 (100 shares x Rs.11)
**Debit:** Share Forfeiture Account - Rs.600 (100 shares x Rs.6)
**Credit:** Share Capital Account - Rs.1,000 (100 shares x Rs.10)
**Credit:** Share Premium Account - Rs.200 (100 shares x Rs.2)

**Summary:**

The journal entry for the forfeiture of shares involves debiting the shareholder's account and the share forfeiture account, and crediting the share capital account and share premium account. The journal entry for the reissue of forfeited shares involves debiting the bank account and the share forfeiture account, and crediting the share capital account and share premium account.