AB Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each. The amount was payable as follows :
`{:("On Application","Rs. 3 per share"),("On Allotment","Rs. 3 per share"),("On First and Final Call","Rs. 4 per share"):}`
Applications for 1,50,000 shares were received and pro-rata allotment was made to all applicants as follows :
Applications for 80,000 shares were allotted 60,000 shares on pro-rata basis.
Applications for 70,000 shares were allotted 40,000 shares on pro-rata basic. Sudha, to whom 600 shares were allotted out of the group applying for 80,000 shares failed to pay the allotment money. Her shares were forfeited inmediately after allotment. Asha, who had applied for 1,400 shares out of the group for 70,000 shares failed to pay the first and final call. Her shares we e also forfeited. Out of the forfeited shares 1,000 were re-issued @ Rs. 8 per share fully paid-up. The re-issued shares included all the forfeited shares of Sudha. Pass neccessary journal entries to record the above transactions.
