Karur Ltd. invited applications for issuing 2,40,000 equity shares of Rs. 10 each at a premium of Rs. 4 per share. The amount was payable as under:
On application – Rs. 4 per share (including premium Rs. 2)
On allotment – Rs. 4 per share
On first and final call – Rs. 6 per share (including premium Rs. 2)
Applications for 3,00,000 shares were received and pro-rata allotment was made to all the applicants. Excess application money received on application was adjusted towards sums due on allotment.
All calls were made and were duly received except from Rohini, who failed to pay allotment and first and final call on 7,500 shares applied by her.
These shares were forfeited. Afterwards, 40% of the forfeited shares were re-issued at Rs.11 per share as fully paid-up.
Pass the necessary journal entries in the books of Karur Ltd. Open call-in-arrears and call-in-advance accounts wherever necessary.