Question

frafition
Ruchi Ltd. issued for public subscription 40,000 Equity Shares of 10 each at a premium of 2 per share
payable as:
On application
*2 per share,
On allotment
*5 per share (including premium),
On first call
*2 per share,
On second and final call
* 3 per share.
Applications were received for 60,000 shares. Allotment was made on pro rata basis to the applicants
for 48,000 shares, the remaining applications being refused. Money overpaid on application was utilised
towards sums due on allotment. Ram to whom 1600 shares were allotted failed to pay the allotment
money and Shyam to whom 2,000 shares were allotted failed to pay the two calls. These shares were
subsequently forfeited after the second and final call was made. All the forfeited shares were reissued as
fully paid-up @ 8 per share.
Give necessary Journal entries for the above transactions.
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Answer 1

Answer:

please check the attachment