DK Goel Solutions Q 72 Chapter 6 Issue of Shares Class 12 CBSE [2023-24]

Durga Ltd. invited applications for issuing 1,00,000 equity shares of ₹ 10 each at par. The amount was payable as follows :

1. On Application ₹ 2 per share.
2. On Allotment ₹ 3 per share.
3. On First and Final Call ₹ 5 per share.

Applications were received for 2,80,000 shares. Applications for 30,000 shares were rejected and the money refunded. Allotment was made to the remaining applicants as follows.

1. Category I — No. of Shares Applied 1,50,000; No. of Shares Allotted 85,000
2. Category II — No. of Shares Applied 1,00,000; No. of Shares Allotted 15,000

Excess money received with applications was adjusted towards sums due on allotment and first and final call. All calls were made and were duly received except the final call by a shareholder belonging to Category I who has applied for 300 shares. His shares were forfeited. The forfeited shares were re-issued at a premium of 30% fully paid up.

Pass necessary Journal entries for the above transactions in the book of Durga Ltd. Open calls in-arrears and calls in advance account wherever required.