Ajanta Ltd. issued a prospectus inviting applications for issuing 5,00,000 equity shares of ₹10 each issued at a premium of 10%.
The amount was payable as follows:
On application ₹3 per share
On allotment (including premium) ₹5 per share
On first and final call ₹3 per share
Applications were received for 6,00,000 shares and pro-rata allotment was made to all applicants. Excess money received on application was adjusted towards sums due on allotment. All amounts were duly received except from Sumit, who was the holder of 1,000 shares, and failed to pay the allotment and first and final call. His shares were forfeited.
Pass journal entries for the above transactions in the books of Ajanta Ltd. Open calls-in-arrears account wherever necessary.