Question 1: J.K. Pharma Ltd. with an authorised capital of Rs. 3,00,000 invited applications for 20,000 shares of Rs. 10 each payable Rs. 3 on application, Rs. 4 on allotment (including premium) and Rs. 4 on 1st  and final call. There was over subscription and applications were received for 36,000 shares. 

Allotment was made as follows:

To applicants of 15,000 shares           15,000 shares

To applicants of 2,500 shares               Nil

To applicants of 18,500 shares             5000 shares

Excess money on application was adjusted against the sum due on allotment and call. All money due was duly received. Give journal entries to record the above transactions.

Pro rata, forfeiture, re-issue, capital reserve

Question 2:    Sodi Ltd. Invited applications for issuing 50,000 Equity shares of Rs. 10 each. The amount was payable as:

On application                       Rs. 3 per share,

On allotment                          Rs. 4 Per share,

On first and final call         Rs. 3 per share,

Applications were received for 75,000 shares and pro rata allotment was made as:

 Group I: Applicants for 40,000 shares were allotted 30,000;

Group II: Applicants for 35,000 shares were allotted 20,000;

Sultan, to whom, 1,200 shares were allotted out of the group I, failed to pay the allotment money. His shares were forfeited immediately after allotment.

Chulbul, who had applied for 700 shares out of the group II, failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 1,000 shares were reissued @ Rs. 8 per share as fully paid-up. The reissued shares included all the forfeited shares of Chulbul.

Pass necessary journal entries to record the above transactions.