OTUA Ltd. was registered with an authorised capital of 2,00,000 equity shares of ₹100 each. The company offered 60,000 shares for public subscription at 25% premium. The share was payable as ₹40 on application and balance on allotment with premium. Public had applied for 85,000 shares. Pro-rata allotment was made in the ratio of 5:4 and remaining applications were sent letters of regret. Mr. Anand holding 4,000 shares failed to pay allotment money and his shares were forfeited. Out of these 3,000 shares were re-issued at a discount of ₹20 per share. Pass necessary entries in the books of the OTUA Ltd.

Marks-6, CBSE:2022-23/Sample/Q-23*

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