XYZ Ltd. is registered with an authorised capital of Rs. 2,00,000 divided into 2,000 shares of Rs. 100 each of which, 1,000 shares were offered for public subscription at a premium of Rs. 5 per share, payable as:
`{:("On application",-,"Rs. 10 per share, "),("On allotment",-,"Rs. 25 per share (including premium),"),("On first call",-,"Rs. 40 per share,"),("On final call",-,"Rs. 30 per share."):}`
Application were received for 1,800 shares, of which applications for 300 shares were rejected outright, the rest of the applications were allotted 1,000 shares on pro rata basis. Excess application money was transferred to allotment.
All the money was duly received except from Sundar, holder of 100 shares, who failed to pay allotment and first call money. His shares were later forfeited and reissued to Shyam at Rs. 60 per share Rs. 70 paid-up . Final call has not been made.
Pass necessary Journal entries and prepare Cash Book in the books of XYZ Limited.