Royal Ltd. invited applications for issuing 2,00,000 equity shares of Rs. 10 each at a premium of 25% payable with application. Applications for 4,50,000 shares were received. Applications for 1,00,000 shares were rejected and money refunded. Pro-rata allotment was made to the remaining applicants. The amount per share was payable as follows:
On Application : Rs. 4 per share including premium
On Allotment : Rs. 3·50 per share
Balance on 1st and Final Call.
Excess application money received with applications was adjusted with sums due on allotment.
Application money in excess of sums due on allotment, if any, was refunded. Raghu, who had applied for 7,000 shares failed to pay allotment money. His shares were forfeited immediately after allotment. Afterwards the first and final call was made.
Nandan, who had applied for 10,500 shares, failed to pay the first and final call. His shares were also forfeited. All the forfeited shares were reissued at Rs. 11·50 fully paid up, to Meeta.
Pass necessary journal entries for the above transactions in the books of Royal Ltd.