[ISC] Q. 49 Solution of Share Capital TS Grewal ISC 2023-24 Edition

Nav Lakshmi Ltd. issued a prospectus inviting applications for 50,000 shares of ₹ 100 each. These shares were issued at par on the following terms:

On application ₹ 30, on allotment ₹ 40, on first call ₹ 20, and on final call the balance.

Applications were received for 60,000 shares.

Allotments were made on the following basis:

1. (i) To applicants for 10,000 shares—in full;
2. (ii) To applicants for 20,000 shares—15,000 shares;
3. (iii) To applicants for 30,000 shares—25,000 shares.

Excess application money is to be adjusted against the amount due on allotment.

The shares were fully called and paid-up except the amounts of allotment, the first and the final call not paid by those who applied for 2,000 shares out of the group applying for 20,000 shares.

All the shares on which calls were not paid were forfeited by the Board of Directors.

1,000 forfeited shares were reissued as fully paid on receipt of ₹ 80 per share.

Pass Journal entries in the books of Nav Lakshmi Ltd.