S Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each. The shares were issued at a premium of Rs. 5 per share. The amount was payable as follows :

On Application and Allotment – Rs. 8 per share (including premium Rs. 3)

On the First and Final call – Balance including premium

Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants on the following basis :

(I) Applicants for 80,000 shares were allotted 60,000 shares, and

(II) Applicants for 60,000 shares were allotted 40,000 shares.

Excess amount received on application and allotment was to be adjusted against sums due on call. X, who belonged to the first category and was allotted 300 shares, failed to pay the first and final call money. Y, who belonged to the second category and was allotted 200 shares, also failed to pay the first and final call money. Their shares were forfeited. The forfeited shares were reissued @ Rs. 12 per share as fully paid-up.

Pass necessary cash book and journal entries for the above transactions in the books of the company.

Marks-8, CBSE:2018-19/Main/04/Q-16*