X Ltd. forfieted 5 shares of rs 10 each issued at 10% premium to sham (rs 9 called up) on which he did not pay allotment (including premium) of rs 3 and first call of rs 2. Out of these 3 shares were re-issued to Ram as fully called up for rs 8 per share.
Can anybody explian me the logic of security premium credited in Re-issue
Bank Account (3 * Rs 8) Dr 24
Forfieted shares account Dr 9
To Share capital account (3 * Rs 10) 30
To Security premium account (3 * Rs 1) 3