X Ltd., invited applications for issuing 5,00,000 equity shares of Rs. 10 each at par. The amount per share was payable as follows :
On Application Rs. 1 per share
On Allotment Rs. 2 per share
On First call Rs. 3 per share
On Second and Final Call - Balance.
Applications for 8,00,000 shares were received. Applications for 1,00,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. All calls were made. Ashok, a shareholder holding 5,000 shares failed to pay the allotment and the call money. Mohan, a shareholder who had applied for 7,000 shares, failed to pay the first and second and final call. Shares of Ashok and Mohan were forfeited after the second and final call. Of the forfeited shares 8,000 shares were re-issued at Rs. 12 per share fully paid up. The re-issued shares included all the forfeited shares of Ashok. Pass necessary journal entries for the above transactions in the books of X Ltd.
