(Forfeiture of Shares Allotted on Pro rata).
A company issued 10,000 shares of Rs.10 each payable as Rs. 2 on application, Rs. 3 on allotment, Rs. 3 on first call and Rs. 2 on second and final call.
Applications were received for 15,000 shares. The shares were allotted on a pro rata basis to the applicants of 12,000 shares. All shareholders paid the allotment money except one shareholder who was allotted 200 shares. These shares were forfeited. The first call was made thereafter. The forfeited shares were reissued @ Rs. 9 per share as Rs. 8 paid-up after first call. The second and final call was not yet made.
You are required to prepare Cash Book and pass Journal entries.

Explanation

Working Notes:
`{:(1.,"10,000 shares were issued to the applicants for 12,000 shares.",),(,:." Ratio of allotment = 5:6",),(,"One who was allotted 5 shares had applied for 6 shares",),(,:. " A shareholder who was allotted 200 shares had applied for = 6/5"xx"200=240 share",),(,"Total application money paid by shareholder on "," Rs."),(,"240 share applied for @ Rs. 2 per share"," 480"),(,"Less: Application money on 200 shares allotted",),(," transferred to share capital"," 400"),(,"Excess Application Money to be adjusted against shares allotment",ulbar(ul(" "80))),(,"Allotment money due on 200 shares @ Rs. 3 per share"," 600"),(,"Less: Excess Application Money to be adjusted against Shares Allotment" ," 80"),(,"Allotment money in arrears",ulbar(ul(" "520))),(2.,"Calculation of allotment money received:"," Rs."),(,"Allotment money due (Gross)","30,000"),(,"Less: Excess Application money to be adjusted (2,000"xx"Rs. 2)"," 4,000"),(,,bar(26,000)),(,"Less: Allotment money in arrears (WN 1)"," 520"),(,"Amount received on allotment",ulbar(ul(25,480))):}`
3. Shares have been forfeited before the first call. Called-up money up to allotment is Rs. 5 per share. But shares have been reissued before the second call for Rs. 9 as Rs. 8 paid-up. It means Rs. 8 is transferred to Share Capital Account and Rs. 1 be transferred to Securities Premium Reserve Account. No discount has been allowed on the reissue of forfeited shares. Therefore, money forfeited on these shares is a gain and transferred to Capital Reserve.