Lotus Ltd. invited applications for issuing 80,000 equity shares of ₹10 each at a premium of ₹4 per share. The amount was payable as follows:
On application ₹5 per share and
On allotment ₹9 per share (included premium).
Applications were received for 1,40,000 shares and allotment was made to all applicants on pro-rata basis. Money overpaid on applications was adjusted towards sums due on allotment. Rajiv, who had applied for 1,400 shares, failed to pay the allotment money. His shares were forfeited. Later on, these forfeited shares were reissued at ₹9 per share as fully paid up.
Pass necessary journal entries for the above transactions in the books of Lotus Ltd.