Prince Limited issued a prospectus inviting applications for 20,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share payable as follows:
`{:("With application",-,"Rs. 2,"),("On allotment (including premium)",-,"Rs. 5,"),("On first call",-,"Rs. 3,"),("On second call",-,"Rs. 3."):}`
Applications were received for 30,000 shares and allotment was made on pro made on pro rata basis. Money overpaid on applications was adjusted to the amount due on allotment.
Mr. Mohit whom 400 shares were allotted , failed to pay the allotment money and the first call, and his shares were forfeited after the first call. Mr. Jolly, whom 600 shares were allotted, failed to pay for the two calls and hence, his shares were forfeited.
Of the shares forfeited , 800 shares were reissued to Supriya as fully paid for Rs. 9 per share, the whole of Mr. Mohit's shares being included .
Pass necessary Journal entries.