A company forfeited 100 Equity shares of ₹10 each issued at a premium of 20% for non-payment of final call of ₹5 including the premium. Show the journal entry for forfeiture of shares:

Correct option is B

Share capital will be debited by face value of shares forfeited i.e., 100×₹10=₹1,000
Securities Premium is not received, hence, it will be debited by 100×2=₹200
Share final call amount is due but not received hence, it will be credited by 100×₹5=₹500
Share forfeiture account will be credited by actual amount received on forfeited share i.e., 100×7=₹700