Ritu Fabrics Ltd. invited applications for issuing 5,00,000 shares of ₹ 10 each at a premium of ₹ 4 per share. The amounts were payable as follows:

Ritu Fabrics Ltd. invited applications for issuing 5,00,000 shares of ₹ 10 each at a premium of ₹ 4 per share. The amounts were payable as follows:

On Application & Allotment	₹ 8 per share
On First and Final Call	Balance (including premium of ₹ 4)

Applicants were received for 6,50,000 shares and allotment was made as follows: (I) To applicants for 1,40,000 shares – 100% shares. (ii) To applicants for 60,000 shares – Nil (iii) Balance of the applicants were allotted shares on pro-rata basis. Excess money received with applications was adjusted towards sums due on first and final call. Arushi, who belonged to category (i) and was allotted 6,000 shares and Gunjan, who belonged to Category (iii) and who had applied for 5,000 shares failed to pay the first and final call money. Their shares were forfeited. 60% of forfeited shares of Arushi and Gunjan were re-issued at a discount of ₹ 1 per share fully paid-up. Pass necessary journal entries for the above transactions in the books of the company. [Ans. Amount received on First and Final Call ₹ 22,28,000; Capital Reserve ₹ 46,800.]