Accountancy Publication Ltd. issued 50,000 equity shares of Rs. 10 each at a premium of 10% payable as under :
On Application Rs. 3, On Allotment Rs. 4 (Premium Rs. 1), On First Call Rs. 2, and On Final Call Rs. 2. The whole of the issue was called for by the company and all the money were duly received excepy the allotment and calls money on 500 shares. These shares were, therefore, forfeited and later on re-issued at Rs. 9 per share as fully paid. Pass the necessary journal to record the above transactions.

Explanation

Capital Reserve Rs. 1,000.