Kochi Silk Ltd. issued a prospectus inviting applications for 40,000 shares of Rs. 10 each at a premium of Rs. 8 per share, payable as follows :
`{:("On Application","Rs. 6 (including Rs. 2 premium)"),("On Allotment","Rs. 6 (including Rs. 2 premium"),("On First Call","Rs. 3 (including Rs. 2 premium)"),("On Second & Final Call","Rs. 3 (including Rs. 2 premium)"):}`
Applications were received for 80,000 shares and pro-rata allotment was made on the applications for 70,000 shares. It was decided to utilise excess application money towards the sums on allotment. X, to whom 1,200 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call his shares were forfeited.
Y, who applied for 3,500 shares failed to pay the two calls and on his such failure, his shares were also forfeited.
Of the shares forfeited, 2,500 shares were reissued as fully paid up for Rs. 9 per share, the whole of Y' s shares being included. Prepare Cash Book and Journal entries.

Explanation

Cash at Bank Rs. 7,21,500, Net amount received on allotment Rs. 58,200, Capital Reserve Rs. 17,500.
Hints : (i) Out of excess application money of Rs. 5,400, an amount of Rs. 4,800 is a part of share capital and the balance of Rs. 600 is a part of securities premium reserve.
(ii) Entry for forfeiture of X's shares :
`{:("Share Capital A/c" ("1,200"xx Rs. 9)," Dr. 10,800"),("Securities Premium Reserve A/c",),(("1,200" xx Rs. 4 = "Rs. 4,800"- Rs. 600)," Dr. 4,200"),(" To Share Allotment A/c"," 1,800"),(" To Share First Call A/c"," 3,600"),(" To Share Forfeiture A/c"," 9,600"):}`