Reference no: EM132560021

Question - Purvanshi Ltd. invited applications for 80,000 equity shares of Rs. 10 each at a premium of Rs. 35 per share.

The amount was payable as follows: Application: Rs. 15 per share (Including Rs. 12 premium)

Allotment: Rs. 10 per share (Including Rs. 8 per share)

First and final call: Balance.

Applications for 75000 shares were received and allotment was made to all the applicants. A shareholder Karan, who was allotted 3000 shares failed to pay the allotment money and his shares were immediately forfeited. Later, the first and final call was made and Mehak, who had 4000 shares failed to pay the first and final call and her shares were subsequently forfeited. Out of the forfeited shares, 5000 shares were reissued at Rs. 50 per share fully paid up. The re-issued shares included all the shares of Karan.

Required - Pass the necessary journal entries and show proper working notes wherever required.