On 1st Jan. 2017, Saraswati Ltd.issued 50,000 equity shares of Rs. 10 each at a p
Channel: Doubtnut
Date: 2020-04-26

On 1st Jan. 2017, Saraswati Ltd.issued 50,000 equity shares of Rs. 10 each at a premium of Rs. 4 per share, payable as follows:  `{:("On Application","Rs. 6",("including Rs. 1 premium")),("On Allotment","Rs. 2",("including Rs. 1 premium")),("On First Call","Rs. 4",("including Rs. 1 premium")),("On Second & Final Call",Rs. 2,("including Rs. 1 premium")):}`  Application were received for 65,000 shares, of which applications for 5,000 shares were rejected and their money was refunded. Rest of the applicants were issued shares on pro rata basis and their excess money was adjusted towards allotment.  Ashok, to whom 1,000 shares were allotted, failed to pay the allotment money and his shares were forfeited after allotment. Rohan, who applied for 1,800 shares failed to pay the two calls and his shares were forfeited after the final call.  1,900 forfeited shares were reissued as fully paid on receipt of Rs. 9 per share, the whole of Rohan's shares being inclued.  Pass necessary Journal entries.