Eiko Ltd. invited applications for issuing 2,00,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The amount was payable as follows:

On Application – Rs. 4 per share

On Allotment – Rs. 6 per share (including premium Rs. 3)

On First and Final Call – Balance

Applications were received for 3,00,000 shares and allotment was made on pro-rata basis to all the applicants. Money overpaid on applications was utilised towards sums due on allotment. Sunil, who applied for 6,000 shares failed to pay the allotment money while Rishab holding 2,000 shares paid the first and final call money with allotment. 

Sunil’s shares were forfeited immediately after allotment. Thereafter, first and final call was made and was duly received. Half of the forfeited shares were reissued to Varsha as fully paid for Rs. 9 per share.

Pass the necessary journal entries to record the above transactions in the books of Eiko Ltd. 

Marks-8, CBSE:2019-20/Main/03/Q-21*

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