SK Ltd. invited applications for 3,20,000 equity shares of Rs. 10 each at a premium of Rs. 5 per share. The amount was payable as follows:
On application-Rs. 3 per share (including premium Rs. 1 per share),
On allotment-Rs. 5 per share (including premium Rs. 2 per share),
On First and Final Call - Balance.
Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were allotted on pro rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jeevan holding 800 shares failed to pay the allotment money and his shares were immediately forfeited. Afterwards, final call was made. Ganesh who had applied for 2,700 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares, 1,500 shares were reissued at Rs. 8 per share fully paid-up. The reissued shares included all the forfeited shares of Jeevan.
Pass necessary Journal entries for the above transactions in the books of the company.

Explanation

working Notes:
`{:(1.,"Calculation of amount not received from Jeevan on Allotment:",,,),(,"Shares applied by Jeevan"=(3,60,000)/(3,20,000)xx800=900 " shares." ,,,),(,,,," Rs."),(,"(b) Application money received on shares applied (900"xx"Rs. 3)",,," 2,700"),(," Less: Application money due on shares allotted (800"xx"Rs. 3)",,," 2,400"),(," Excess Application money adjusted on allotment",,,ulbar(ul( " " 300))),(,,"Share Capital",,"Securities Premium Reserve"),(,"(c) Allotment money due on shares allotment"," Rs.",," Rs."),(," (800"xx"Rs. 3 Share Capital ) and (800"xx"Rs. 2 Premium)"," 2,400",," 1,600"),(,"Less: Excess Application money adjusted on allotment [WN 1 (b)]"," 300",," ..."),(," Allotment money due but not received"," "ulbar(ul(" "2,100)),," "ulbar(ul(" "1,600))),(2.,"Calculation of Amount received on Allotment:",,," Rs."),(,"Total Allotment money due",,," 16,00,000"),(,," Rs.",,),(,"Less: Allotment money already received"," 1,20,000",,),(," Allotment money due but not received [as per WN 1]"," "ul( 3,700),," "ul(1,23,700)),(,"Amount received on Allotment",,," "ul(ul(14,76,300))),(3.,"Number of Shares allotted to Ganesh"=(3,20,000)/(3,60,000)xx"2,700=2,400 shares.",,,),(4.,"Calculation of Amount transferred to Capital Reserve:",,," Rs."),(,"Amount forfeited on reissued shares: Jeevan (800 shares) [Rs. 2,700 - Rs. 800(premium)]",,," 1,900"),(," Ganesh (700 shares) [Rs.12,000"xx"700/2,400]",,," 3,500"),(,"Total forfeited amount on 1,500 shares",,," "bar(5,400)),(,"Less: Discount on reissue of 1,500 forfeited shares",,," 3,000"),(,"Amount transferred to Capital Reserve",,," "ulbar(ul(2,400))):}`