Jain Ltd. invited applications for issuing 1,12,000 equity shares of ₹ 10 each at par. The amount per share was payable as follows:
On First Call
On Second and Final Call
Applications for 1,00,000 shares were received. Shares were fully allotted to all the applicants. Ramesh failed to pay his allotment money which was ₹ 2,000. His shares were forfeited immediately. Suresh did not pay the first call on 500 shares applied by him. His shares were forfeited after the first call. The forfeited shares of Ramesh and Suresh were reissued at ₹ 9 per share fully paid-up. Afterwards the second and final call was made and was duly received.
Pass necessary Journal entries for the above transactions in the books of Jain Ltd.
[Ans.: Capital Reserve – ₹ 1,000.]