Slow & Steady Ltd. invited applications for 10,000 Equity Shares of ₹ 10 each for public subscriptions. The amount of these shares was payable as:
On application ₹ 1 per share, on allotment ₹ 2 per share, on first call ₹ 3 per share and on second and final call ₹ 4 per share.
All sums payable on application, allotment and calls were duly received with the following exceptions.
- A, who held 200 shares, failed to pay the money on allotment and calls.
- B, to whom 150 shares were allotted, failed to pay the money on first call and final call.
- C, who held 50 shares, did not pay the amount of second and final call.
The shares of A, B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%.
Pass necessary Journal entries to record these transactions in the books of the company.
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