Zen Ltd. issued 20,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share, payable as :
On application ₹ 2 per share
On allotment ₹ 5 per share (including premium)
On first call ₹ 2 per share
On final call the balance.
Applications were received for 25,000 shares. Allotment was made to the applicants of 23,000 shares. Excess money received with application was transferred towards sum due on allotment. Vinod who was allotted 1,200 shares failed to pay the first call and his shares were forfeited immediately. Out of the forfeited shares 800 shares were reissued to Sanjay @ ₹ 6 per share, ₹ 8 paid up. The final call is not been made. Pass necessary Journal entries to record the above transactions.