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a Company's

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A company's capital consists of 50 000 ordinary shares issued at $2 and paid to $1 per share.
On 1 September, a first call of 50c was made on the ordinary shares. By 30 September, the call money received amounted to $22 500. No further payments were received, and on 31 October, the shares on which calls were outstanding were forfeited. On 15 November, the forfeited shares were reissued as paid to $1.50 for a payment of $1 per share. The appropriate cash amount from the reissue was received on 19 November. Costs of reissue amounted to $2 000. The company's constitution provided for any surplus on resale, after satisfaction of unpaid calls, accrued interest and costs, to be returned to the shareholders whose shares were forfeited.
-The entry to record the reissue of forfeited shares is:

A) $\begin{array} { l l l l } \text { Cash } & \mathrm { Dr } & 5000 & \\\text { Forfeited shares } & \mathrm { Dr } & 2500 & \\\quad \text { Share capital - Ordinary } & \mathrm { Cr } & & 7500\end{array}$
B) $\begin{array} { l l l l } \text { Cash } & \mathrm { Dr } & 2500 & \\\text { Forfeited shares } & \mathrm { Dr } & 2500 & \\\quad \text { Share capital-Ordinary } & \mathrm { Cr } & & 5000\end{array}$
C) $\begin{array} { l l l l } \text { Cash } & \mathrm { Dr } & 5000 & \\\quad \text { Share capital - Ordinary } & \mathrm { Cr } & & 5000\end{array}$
D) $\begin{array} { l l l l } \text { Share capital } & \mathrm { Dr } & 7500 & \\\text { Forfeited shares } & \mathrm { Cr } & & 7500\end{array}$

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