JJK Ltd. invited applications for issuing 50, 000 equity shares of Rs.10 each at par. The...

 

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JJK Ltd. invited applications for issuing 50, 000 equity shares of Rs.10 each at par. The amount was payable as follows: On Application : Rs.2 per share. On Allotment : Rs.4 per share. On First and Final Call: Balance Amount The issue was over-subscribed three times. Applications for 30% shares were rejected and money refunded. Allotment was made to the remaining applicants as follows: Category No. of Shares Applied I 80,000 No. of Shares Allotted 40,000 10,000 II 25,000 Excess money paid by the applicants who were allotted shares was adjusted towards the sums due on allotment. Deepak. a shareholder belonging to Category I. who had applied for 1,000 shares, failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares of both Deepak and Raju were forfeited immediately after allotment. Afterwards, first and final call was made and was duly received. The forfeited shares of Deepak and Raju were reissued at Rs.11 per share fully paid up. Pass necessary Journal entries for the above transactions in the books of the company. JJK Ltd. invited applications for issuing 50, 000 equity shares of Rs.10 each at par. The amount was payable as follows: On Application : Rs.2 per share. On Allotment : Rs.4 per share. On First and Final Call: Balance Amount The issue was over-subscribed three times. Applications for 30% shares were rejected and money refunded. Allotment was made to the remaining applicants as follows: Category No. of Shares Applied I 80,000 No. of Shares Allotted 40,000 10,000 II 25,000 Excess money paid by the applicants who were allotted shares was adjusted towards the sums due on allotment. Deepak. a shareholder belonging to Category I. who had applied for 1,000 shares, failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to Category II. Shares of both Deepak and Raju were forfeited immediately after allotment. Afterwards, first and final call was made and was duly received. The forfeited shares of Deepak and Raju were reissued at Rs.11 per share fully paid up. Pass necessary Journal entries for the above transactions in the books of the company.

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Date Particulars Journal Bank Ac1500002 To share Application Ac Received application money on 150000 ... View the full answer