Amrit Ltd. issued 50,000 shares of ₹ 10 each at a premium of 20% payable as ₹ 3 on application, ₹ 4 on allotment (including premium), ₹ 2 on first call and the remaining on second call

Amrit Ltd. issued 50,000 shares of ₹ 10 each at a premium of 20% payable as ₹ 3 on application, ₹ 4 on allotment (including premium), ₹ 2 on first call and the remaining on second call.

Applications were received for 80,000 shares and pro-rata allotment was made in the ratio of 3 : 2 and the remaining applicants were sent letter of regret. All moneys due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for ₹ 9,600. Final call was not made. Pass the necessary journal entries.

[Ans. Amount received on Allotment ₹ 1,23,000; Capital Reserve ₹ 3,600.]