J.K. Ltd invited application to issue 3,000 equity shares of face value 10 each at par. The
Question:
J.K. Ltd invited application to issue 3,000 equity shares of face value ₹10 each at par. The amount to be paid as to ₹3 at the time of application, ₹ 6 on allotment, ₹1 per share on first and final call. The company received the application for 5,500 shares, applicants for 500 shares were refused the allotment and remaining applicants were given pro rata allotment. The excess application money of the successful applicants was adjusted against the allotment money and in the subsequent calls. One shareholder holding 300 shares paid only the application money. Rest of the shareholders paid the due amount in time. These 300 shares were forfeited and reissued at a disclunt of Re. 1 each. Show necessary journal entries in the journal.
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