‘Venus Ltd.’ was registered with an authorised capital of ₹ 40,00,000 divided into 4,00,000 equity shares of ₹ 10 each. 70,000 of these shares were reissued as fully paid to ‘M/s Star Ltd.’ for building purchased from them

‘Venus Ltd.’ was registered with an authorised capital of ₹ 40,00,000 divided into 4,00,000 equity shares of ₹ 10 each. 70,000 of these shares were reissued as fully paid to ‘M/s Star Ltd.’ for building purchased from them. 2,00,000 shares were issued to the public and the amounts were payable as follows:

On Application	₹ 3 per share
On Allotment	₹ 2 per share
On First Call	₹ 2 per share
On Second and Final Call	₹ 3 per share

The amounts received on these shares were as follows:

On 1,00,000 Shares	Full amount called
On 60,000 Shares	₹ 7 per share
On 30,000 Shares	₹ 5 per share
On 10,000 Shares	₹ 3 per share

The directors forfeited 10,000 shares on which only ₹ 3 per share were received. These shares were reissued at ₹ 121 per share fully paid. Pass necessary Journal entries for the above transactions in the books of Venus Ltd. [Ans.: Capital Reserve – ₹ 30,000.]