Super Star Ltd. issued a prospectus inviting applications for 2,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as:
| On application |
Rs. 3 per share (including Rs. 1 premium) |
| On allotment |
Rs. 4 per share (including Rs. 1 premium) |
| On first Call |
Rs .3 per share |
| On second and final call |
Rs. 2 per share |
Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares. It was decided to utilise excess application money towards the amount due on allotment. Ramesh, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited. Rajesh, who applied for 72 shares failed to pay the two calls and on such failure, his shares were forfeited. Of the shares forfeited, 80 shares were sold to Krishan credited as fully paid-up for Rs. 9 per share, the whole of Ramesh’s shares being included. Give journal entries to record the above transactions (including cash transactions).
