Raja Ltd. invited applications for issuing 50,000 Equity Shares of ₹ 10 each. The amount was payable as follows:

Raja Ltd. invited applications for issuing 50,000 Equity Shares of ₹ 10 each. The amount was payable as follows:

On Appliation	₹ 3 per share
On Allotment	₹ 5 per share, and
On First and Final Call	Balance

Applications for 70,000 shares were received. Allotment was made to all applicants on pro rata basis. Excess money received on application was adjusted towards sums du on allotment. Ramesh, who had applied for 700 shares, did not pay the allotment money and on his failure to pay the allotment money his shares were forfeited. Afterwards, the first and final call was made. Adhar, who had been allotted 500 shares, did not pay the first and final call. His shares were also forfeited. Out of the forfeited shares 900 shares were reissued at ₹ 8 per share as fully paid-up. The reissued shares included all the shares of Ramesh. Pass necessary Journal entreis for the above transactions in the books of the company. [Ans.: Amount due but not received from Ramesh on allotment – ₹ 1,900; Allotment money received later – ₹ 1,88,100; Amount transferred to Capital Reserve – ₹ 3,500.]