Sudershan Ltd. invited applications for 1,00,000 Equity Shares of Rs. 10 each. The shares were issued at a premium of Rs. 5 per share. The amount was payable as follows:
On application and allotment Rs. 8 per share (including premium Rs. 3),
the balance including premium on the first and the final call.
Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro rata allotment was made to the remaining applicants on the following basis:
(i) Applicants for 80,000 shares were allotted 60,000 shares and
(ii) Applicants for 60,000 shares were allotted 40,000 shares.
Excess amount received on application and allotment is to be adjusted against amount due on call. X, who belonged to the first category and was allotted 300 shares, failed to pay the first call money. Y who belonged to the second category and was allotted 200 shares also failed to pay the first call money. Their shares were forfeited. The forfeited shares were reissued @ Rs. 12 per share as fully paid-up.
Prepare Cash Book and pass necessary Journal entries.

Explanation

Working Notes:
1. No. of shares applied by X = 80,000/60,000 `xx` 300 = =400 Shares.
No. of shares applied by Y = 60,000/40,000 `xx` 200 = 300 Shares.
2. The surplus application and allotment money paid by X and Y which is adjusted on the first and the final call `=200xxRs. 8 = Rs. 1,600`.
`{:("3. Calculation of first and final call money received:" ,," Rs."),(" Amount due on first and final call (1,00,000 "xx"Rs. 7)",,"7,00,000"),(" Less: Call-in-Advance",,"3,20.000"),(,,bar(3,80,000)),(" Less: Not paid by X and Y (500"xx"Rs. 7 - Rs. 1,600)",," 1,900"),(,,ulbar(ul(3,78,100))),(,,),(,,),(,,):}`
`{:("4. Calculation of amount forfeited on 500 shares:"," Rs."," Rs."),(" X applied for 400 shares and paid @ Rs. 8","3,200",),(" Less: Transferred to Securities Premium Reserve on",,),(" 300 shares @ Rs. 3 "," 900","2,300"),(" Y applied for 300 shares and paid @ Rs. 8 ",bar(2,400),),(" Less: Transferred to Securities Premium Reserve on 200 shares",,),(" allotted to him @ Rs. 3",ul(600),ul(1,800)),(" Amount to be forfeited",,ul(ul(4,100))):}`