Q 119. Oversubscription of Share, issued at Premium, Reissued at Discount. Chapter 6, Class 12th

Explain Concept & Journal Entries of Oversubscription of Shares, Issued at Par, Calls in Arrears, Shares Forfeiture, Reissued at Discount. Accountancy Part A Volume II, Chapter 6, Class 12th. Q 119. ( D.K.goel ) Q J. D. Ltd. invited Application for issuing 1,20,000 Shares of ₹ 10 each at a premium of ₹ 2 per Share. The amount was payable as follows : On Application - ₹ 2 per Share On Allotment - ₹ 5 per Share ( including premium ) On First & Final Call - balance Application for 1,50,000 Shares were received. Shares were allotted to all the applicants on pro-rata basis. Excess money received on Applications was adjusted towards sum due on Allotment . All call were made. M , who had applied for 3,000 Shares failed to pay the amount due on Allotment and First and Final Call. N , who was allotted 2,400 Shares failed to pay the First and Final Call. Shares of both M and N were forfeited. The forfeited shas were re-issued at ₹ 9 per Share as fully paid up. Pass necessary journal entries in the books of the company.