Studying this for my finals, I always remember that when shares issued at a premium are forfeited, the share capital account is debited for the called-up amount, and the securities premium account is untouched—that premium is not forfeited. On reissue, any excess received over the forfeited amount is credited to the securities premium account again. It's a precise rule, like following my mother's sambar recipe; you don't skip the tamarind. I grind my own podi every Friday, and that discipline of doing each step correctly, no shortcuts, is exactly what Company Law demands here.
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