JK Ltd. invited applications for issuing 50,000 equity shares of Rs. 10 each at par. The amount was payable as follows:

       On Application Rs. 2 per share
       On Allotment Rs. 4 per share
      On First and Final call Balance Amount

The issue was oversubscribed three times. Applications for 30% shares were rejected and money refunded. Allotment was made to the remaining applicants as follows:

 Category No. of Shares Applied No. of Shares Allotted
       I    80,000   40,000
      II    25,000  10,000

Excess money paid by the applicants who were allotted shares was adjusted towards sums due on allotment. Deepak, a shareholder belonging to Category I, who had applied for 1,000 shares, failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares of both Deepak and Raju were forfeited immediately after allotment. Afterwards, first and final call was made and was duly received. The forfeited shares of Deepak and Raju were reissued at Rs.11 per share fully paid-up.
Pass necessary journal entries for the above transactions in the books of company.


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