[ISC] Q. 56 Solution of Share Capital TS Grewal ISC 2023-24 Edition

Swaraj & Co. was registered with an authorised capital of ₹ 5,00,000 divided into 50,000 shares of ₹ 10 each. The company issued 30,000 of these shares to the public, which were payable as ₹ 2 per share on application, ₹ 4 per share on allotment and the balance three months later.

Applications for 46,000 shares were received on which the Directors allotted as follows:

1. Applications for 20,000 shares — Full;
2. Applications for 25,000 shares — 40%;
3. Applications for 1,000 shares — Nil.

₹ 86,000 was realised on account of the allotment money (excluding the amount carried from the application money) and ₹ 1,00,000 on account of call. The Directors decided to forfeit those shares on which the allotment money was overdue.

Pass the Journal entries in the company’s books.