AXN Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each at a premium of Rs. 6 per share. The amount was payable as follows :
`{:("On Application","Rs. 4 per share (including Rs. 2 premium)"),("On Allotment","Rs. 5 per share (including Rs. 2 premium)"),("On First Call","Rs. 4 per share (including Rs. 2 premium)"),("On Second and Final Call","Balance Amount."):}`
The issue was fully subscribed.
Kumar, the holder of 400 shares did not pay the allotment money and Ravi the holder of 1,000 shares paid his entire share money alongwith allotment money. Kumar's shares were forfeited immediately after allotment. Afterwards first call was made. Gupta, a holder of 300 shares failed to pay the first call money and Gopal a holder of 600 shares paid the second call money also alongwith first call. Gupta's shares were forfeited immediately after the first call. Second and dinal call was made afterwards. The whole amount due on second call was received. All the forfeited shares were re-issued at Rs. 9 per share fully paid up. Pass necessary Journal Entries for the above transactions in the books of the company.