DK Goel Solutions Q 61 Chapter 6 Issue of Shares Class 12 CBSE [2023-24]

A company issued for public subscription 40,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share payable as under :

1. On Application ₹ 3 per share
2. On Allotment ₹ 4 per share (including premium)
3. On First Call ₹ 2 per share
4. On Second Call ₹ 3 per share

Applications were received for 70,000 shares. Allotment was made pro-rata to the applicants for 50,000 shares, the remaining applications being refused. Money overpaid on application was applied towards sum due on allotment. A, to whom 1,600 shares were allotted failed to pay the allotment and calls money. B, to whom 2,000 shares were allotted failed to pay the two calls. The shares of A and B were subsequently forfeited after the second call was made. 3,000 of the forfeited shares were re-issued at ₹ 8 per share fully paid. The re-issued shares included all of A’s shares.

Pass journal entries in the books of the company to record the above transactions.