X Ltd. invited applications for issuing 50,000 equity shares of Rs. 10 each. The amount was payable as follows:
`{:("On Application",:,"Rs. 2 per share,"),("On Allotment",:,"Rs. 2 per share,"),("On First Call",:,"Rs. 3 per share,"),("On Second and Final Call",:,"Balance amount."):}`
Applications for 70,000 shares were received. Applications for 10,000 share were rejected and the application money was refunded.
Shares were allotted to the remaining applicants on a pro rata basis and excess money received with applications was transferred towards sums due on allotment and calls, if any.
Gopal, who applied for 600 shares, paid his entire share money with application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were reissued to Sultan for Rs. 20,000 , Rs. 4 per share paid-up. The first call money and the second and final call money was called and duly received.
Pass necessary Journal entries for the above transactions in the books of X Ltd. Open Call-in-Advance Account and Calls-in-Arrears Account wherever necessary .