DK Goel Solutions Q 69 Chapter 6 Issue of Shares Class 12 CBSE [2023-24]

X Ltd. invited applications for 4,00,000 shares of ₹ 10 each. The shares were issued at a premium of ₹ 7 per share. The amount was payable as follows :

1. On Application & Allotment : ₹ 9 per share (including premium ₹ 4)
2. On First & Final Call : The balance amount (including premium)

Applications were received for 5,70,000 shares and the allotment was made as under :

1. (i) To applicants for 3,50,000 shares : 2,50,000 shares on pro-rata basis
2. (ii) To applicants for 2,00,000 shares : 1,50,000 shares on pro-rata basis
3. (iii) To applicants for 20,000 shares : NIL

Excess application and allotment money could be utilized for calls.

A, who belonged to the first category and was allotted 500 shares, failed to pay the first call money. B, who belonged to the second category and was allotted 300 shares also failed to pay the first call money. Their shares were forfeited and were re-issued @ ₹ 15 per share fully paid-up.

Pass necessary Cash-Book and Journal entries.