107 :- Alok Ltd. invited applications for 1,00,000 Equity Shares of Rs 10 each. The shares were issued at a premium of Rs 5 per share. The amount was payable as follows:
On Application and Allotment Rs 8 per share (including premium Rs 3). Balance, including premium on the First and Final Call.
Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected, and pro rata allotment was made to the remaining applicants on the following basis:
(i) Applications for 80,000 shares were allotted 60,000 shares; and
(ii) Applications for 60,000 shares were allotted 40,000 shares.
Mohan, who belonged to the first category and was allotted 300 shares, failed to pay the first and final call money. Sohan, who belonged to the second category and was allotted 200 shares, also failed to pay the call money; their shares were forfeited. The forfeited shares were reissued @ 12 per share, fully paid-up. Prepare Cash Book and pass necessary Journal entries.
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