Z Ltd. invited applications for issuing 40,000 equity shares of rs 10 each at a premium of rs 2 per share. The amount was payable On Application rs 6 (including premium) and balance on Allotment Applications for 50,000 shares were received. Pro-rata allotment was made to all applicants. Excess money received on application A shareholder, to whom 8,000 shares were allotted, failed to pay the allotment money and therefore, his shares were forfeited. Later on, the forfeited shares were reissued for 70,000 as fully paid-up. Pass necessary journal entries in the books of Z Ltd. [Ans. (i) Amount received on allotment = 2,40,000-60,000-36,000 = 1,44,000, ii) Share Forfeited A/c (8,000 x 4) + 12,000 = 44,000; (iii) Capital Reserve A/c 34,000] as follows: was adjusted towards sum due on allotment