Concept Stationary Ltd. invited applications for issuing 3,00,000 shares of Rs. 10 each at a premium of Rs. 3 per share. The amounts were payable as follows :
On application and allotment – Rs. 7 per share.
On first & final call – balance (including premium of Rs. 3)
Applications were received for 4,00,000 shares & allotment was made as follows:
(i) To applicants for 80,000 shares – 80,000 shares.
(ii) To applicants for 40,000 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.
Amit, who belonged to category (i) and was allotted 4,000 shares and Veni, who belonged to category (iii) and was allotted 4,400 shares failed to pay the first and final call money. Their shares were forfeited. The forfeited shares were re-issued at Rs. 7 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of the company.