AB Ltd. issued 30,000 shares of 10 each at par, payable as follows:

3 per share – on application

3 per share – on allotment

Balance – on first and final call

Applications were received for 50,000 shares. Applications for 10,000 shares were rejected and allotment was made on pro-rata basis to the remaining applicants. Excess money received on application was adjusted towards sums due on allotment. Natasha, who had applied for 1,600 shares, failed to pay the amount due on allotment and call. The company forfeited her shares. Later on, these forfeited shares were reissued at 10 per share as fully paid-up.

Pass the necessary journal entries in the books of AB Ltd. for the above transactions. 

Marks-8, CBSE:2019-20/Compartment/Q-21*

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