2. Ganesh Electrical Co. Ltd issued a prospectus inviting applications for 12,000

shares of Rs.200 each at a premium of Rs.50 per share, payable as follows:

On Application Rs.75 per share

On Allotment Rs.75 per share (Including premium)

On first call Rs.40 per Share

On final call Rs.60 per share

Applications were received for 15,000 shares and allotment made by the

directors as follows:

Reject fully Applications for 3,000 shares and refund application money.

Allot 100% shares to remaining applicants.

The directors made calls on shares and moneys duly received except on 500

shares held by Mr. Ajay Pednekar, who failed to pay first call and final call. His

shares were forfeited and then re-issued to Mr. Mahesh @ Rs.180 per share as

fully paid.

Pass journal entries in the books of Ganesh Electrical Co. Ltd.