Elite Ltd. invited applications from public for 5,00,000 equity shares of Rs. 10 each issued at Rs. 11 per share. The payment was to be made as follos : Rs. 3 on Application, Rs. 4 on Allotment including premium, and Rs. 4 on call. Applications fr 6,50,000 shares were received. Allotment of shares was made as follows : (i) 100% shares to applicants of 4,00,000 shares, (ii) 50% shares to applicants of 2,00,000 shares, (iii) No allotment to applicants of 50,000 shares. A shareholder to whom 500 shares were allotted under category (i) paid full amount due on shares along with allotment money. Another shareholderholding 1,000 shares were subsequently re-issued as fully paid-up @ Rs. 8 per share. Pass the journal entries.

Explanation

Cash at Bank Rs. 55,02,400, Balance of Securities Premium Reserve A/c Rs. 5,00,000, Balance of Share forfeiture A/c Rs. 1,200, Capital Reserve Rs. 3,200.