Vairam Ltd. issued 60,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as follows:
On application Rs. 6
On allotment Rs. 4 (including premium)
On first and final call Rs. 2
Issue was fully subscribed and the amounts due were received except Saritha to whom 1,000 shares were allotted who failed to pay the allotment money and first and final call money. Her shares were forfeited. All the forfeited shares were reissued to Parimala at Rs. 7 per share. Pass journal entries.
