A company issued for public subscription 60,000 equity shares of Rs. 10 share at a permium of Rs. 4 per share, payable as under : Rs. 4 on Application, Rs. 5 on Allotment (including premium), Rs. 2.50 on First Call and Rs. 2.50 on Final Call. Applications were received for 75,000 equity shares. The shares were allotted pro-rata to the applicants for 70,000 shares, the remaining applications being rejected. Money over-paid on applications was utilised towards sums due on allotment. A, to whom 1,200 shares were allotted failed to pay allotment and calls money and B, to whom 1,800 shares were allotted failed to pay two calls. These shares were subsequently forfeited after the final call was made. All the forfeited shares were sold to Rajesh as fully paid-up at Rs. 11 per share. Prepare Cash Book and journal entries required to record the above transactions.

Explanation

Amount received on Allotment Rs. 2,54,800, Capital Reserve Rs. 14,600. Bank Balance Rs. 8,52,800.
Hint : Premium of Rs. 4,800 due on A's shares will be debited in the entry of forfeiture.