Jai Jawan Jai Kisan Company Limited forfeits 2,00,000 shares of ₹5 each, originally issued at a premium of ₹1 per share. The shareholder paid ₹2 per share on application but did not pay the allotment money of ₹2 per share (including premium) and call of ₹2 per share. Jai Jawan Jai Kisan Company takes credit for the premium as soon as it becomes due. The shares are subsequently reissued at ₹5.50 per share fully paid up.

The journal entries for the forfeiture of the shares are passed as follows:

Explanation: being forfeiture of 2,00,000 shares on account of non-payment of allotment and call moneys.

Based on the above, please answer the questions:

(i) Pass the journal entry for reissue of forfeited shares (explanation provided would be: being reissue of forfeited shares).

(ii) Pass the journal entry for transfer of profit on shares forfeited (explanation provided would be: being transfer of profit on shares forfeited to … reserve (please fill the blank therein)

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By Share capital a/c By Securities premium a/c Dr. Dr. To share allotment a/c To share call a/c To shares forfeited a/c Cr. Cr. Cr. *10,00,000 *2,00,000 *4,00,000 4,00,000 *4,00,000