Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was payable as follows:
₹ 2 per share
₹ 5 per share (including premium)
On First and Final Call
Applications for 1,50,000 shares were received. Shares were allotted to all the applicants on pro rata basis. Excess money received on applications was adjusted towards sums due on allotment. All calls were made. Manu who had applied for 3,000 shares failed to pay the amount due on allotment and first and final call. Madhur who was allotted 2,400 shares failed to pay the first and final call. Shares of both Manu and Madhur were fofeited. The forfeited shares were reissued at ₹ 9 per share as fully paid-up.
Pass necessary Journal entries for the above transactions in the books of Jeevan Dhara Ltd.
[Ans.: Capital Reserve – ₹ 13,200.]