Premier Tools Ltd. invited applications for issuing 2,00,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share. The amount was payable as follows :
On application – Rs. 5 per share (including premium)
On allotment – Rs. 3 per share
On first & final call – Balance
Applications were received for 2,50,000 shares. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payments received on application were adjusted towards sums due on allotment.
All calls were made and duly received except allotment and first and final call from Naveen who applied for 7,200 shares. His shares were forfeited.
Half of the forfeited shares were reissued for Rs. 48,000 as fully paid.
Pass the necessary journal entries for the above transactions in the books of Premier Tools Ltd. Open calls-in-arrears account wherever required.