Yash Ltd. invited applications for 50,000 equity shares of ₹10 each at a premium of 10%. The amount was payable as follows:

On application ₹3 per share; on allotment (including premium) ₹3 per share and on first and final call, the balance amount.

Applications were received for 1,20,000 shares and shares were allotted on pro-rata basis to all applicants. The excess money received on application was to be adjusted towards sums due on allotment. Application money in excess of sums due on allotment was refunded. A shareholder who applied for 6,000 shares could not pay the first and final call money and his shares were forfeited. The forfeited shares were reissued for ₹60,000 fully paid up.

Pass necessary journal entries for the above transactions in the books of Yash Ltd.

Marks-6, CBSE:2022-23/Zone-4/Set-1/Q-26*

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