Zee Ltd. invited applications for issuing 3,40,000 equity shares of Rs. 10 each at a premium of Rs. 5 per share. The amount was payable as follows:
On application Rs. 4 per share (including Rs. 2 premium)
On allotment Rs. 5 per share (including Rs. 2 premium)
On First and Final call – Balance.
Applications for 6,00,000 shares were received. Application for 1,80,000 shares were rejected and application money was refunded. Shares were allotted on prorata basis to the remaining applicants. Excess money received with applications was adjusted towards sum due on allotment.
Yamini who had applied for 2100 shares failed to pay allotment money and her shares were forfeited immediately. Vani to whom 6800 shares were allotted paid her entire share money due on allotment. Afterwards First and Final call was made and was duly received. Out of the forfeited shares 850 shares were reissued to Vansh at Rs. 8 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of the company by opening calls-in-arrears and calls-in-advance accounts.