• topic: reissue of forfeiture shares
• Reissue of Forfeited Shares at 'Premium'
  
  can anyone explain me example 3??
  how the amount of share capital amount rs.300 is multiplied by 32??

In the given example the number of shares forfeited by Lal Ltd is 300 share . On these shares the company had not made the first and final call Hence the amount called up is:

Amount Called up = Face value of Share – Call’s not made

  = 50-18

   =Rs32

Hence The amount of share capital would be 300 shares × Rs 32 = Rs 9,600

According to the language of the example we can come to the conclusion that :

Share application money = Amount Called Up – Share allotment Money (Exclusive of premium of Rs 8)

   = 32-22*(Refer Note1)

  = Rs 10

*Note 1

Share allotment Money = Amount Called up on allotment – Securities premium  

   =Rs 30-Rs8

   =Rs 22

Thus while passing the entry of forfeiture we have Debited the share capital account with  (300 shares × Rs 32) = Rs9,600 and securities premium account by  (300 shares × Rs 32) = Rs2,400 , while we have credited share forfeiture account by (300 shares × Rs 10) = Rs 3,000 as this is the share application money which have been recived by the company  and Share allotment money not paid of (300 shares × Rs 30) = Rs9,000