ILLUSTRATION 7. Give the necessary journal entries to record the following transactions : (a) A shareholder was holding 500 equity shares of $. 10 each of a company issued at 10% discount. He paid $. 2 on application, $. 3 on allotment but could not pay the first call of $. 3 per share and his shares were forfeited by the directors. The shares were reissued subsequently at a price of $ 7 per share. (b) A holds 200 equity shares of $. 10 each on which he paid $. 1 per share as application money. B holds 300 equity shares of $ 10 each on which he has paid $. 1 and $. 3 per share as application and allotment money respectively. C holds 500 equity shares of . $ 10 each on which he has paid $. 1 on application, . $ 3 on allotment and $. 2 on first call. They all fail to pay their arrears and the second call of $. 2 per share and the directors, therefore, forfeited the shares. All these shares were reissued subsequently @ $. 11 per share as fully paid.