Alfa Ltd. issued 5,000 shares of ₹ 100 each at par. The amount payable was as under: ₹ 25 on application; ₹ 25 on allotment;

Alfa Ltd. issued 5,000 shares of ₹ 100 each at par. The amount payable was as under:

₹ 25 on application;
₹ 25 on allotment;
₹ 20 on first call; and
₹ 30 on final call.

The company did not make final call. X, a holder of 100 shares, failed to pay allotment and first call money. Directors forfeited his shares and immediately re-issued the forfeited shares at ₹ 6,500.

Pass Journal entries in the books of the company and show the Share Capital in the Balance Sheet.

[Ans. Cash at Bank ₹ 3,52,000; Share Capital ₹ 3,50,000; Capital Reserve ₹ 2,000.]