Rupa Ltd. Issued 150,000 shares of Rs.10 each payable as follows:
Rs.2 on application
Rs.3 on allotment
Balance on First and Final call.
Applications were received for 300,000 shares and pro rata allotment was made as follows:
To the applicants of 70,000 shares – Full
To the applicants of 200,000 shares- 80,000 shares
To the applicants of 30,000 shares –Nil
Rs 192,000 was realised on account of allotment money( excluding the amount carried from application money) and Rs.695,000 on account of call.
The directors forfeited the shares of those applicants to whom full allotment was made and on which allotment money was overdue. The forfeited shares were reissued to Manu at Rs. 8 per share fully paid.
Pass necessary journal entries for the above transactions.