Diamond Ltd. issued a prospectus inviting applications for 20,000 shares of ₹ 10 each. The amount was payable as follows:

On Application – ₹ 4 per share

On Allotment – ₹ 4 per share On First and Final call – Balance

Applications for 45,000 shares were received and allotment was made as follows:

Category (i) – Applicants for 35,000 shares were allotted 15,000 shares. 

Category (ii) – Applicants for 10,000 shares were allotted 5,000 shares.

It was decided that excess money received on application be adjusted towards sum due on allotment and calls.

Amar, an applicant of Category (ii), who was allotted 500 shares, failed to pay the first and final call. His shares were forfeited and subsequently reissued at ₹2 per share as fully paid up.

Pass necessary journal entries to record the above transactions in the books of Diamond Ltd.

Marks-6, CBSE: 2023-24/Compartment/Set-1/Q-25a*