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Alfa Ltd. invited applications for issuing Rs.75,000 equity shares of Rs.10 each. The amount was payable as follows: 

On application and allotment – Rs.4 per share. 

On first – Rs.3 per share 

On second and final call – Balance 

Applications for Rs.1,00,000 shares were received. Shares were allotted to all the applicants on prorata basis and excess money received with application was transferred towards sums due on first call. Vibha who was allotted 750 shares failed to pay the first call. Her shares were immediately forfeited. Afterwards the second call was made. The amount due on second call was also received except on 1000 shares, applied by Monika. Her shares were also forfeited. All the forfeited shares were re-issued to Mohit for Rs.9,000 as fully paid up. Pass necessary journal entries in the books of Alfa Ltd. for the above transactions.

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Working Note: 

1. Applied Alloted Excess
1,00,000 75,000 25,000

2. Vibha Application money received on 1,000 × 4 = Rs.4,000

 Less: Application money adjusted on 750 × 4 = Rs.3,000

Excess money =Rs.1,000

1st call money due 750 × 3 = Rs.2,250

Less: Excess money =Rs.1,000

Amount not paid on 1st call =Rs.1,250

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