Pushkar Limited invited applications for 30,000 shares of ₹100 each at 20% premium. The amount per share was payable as under:
On application ₹40 (including ₹10 premium)
On allotment ₹30 (including ₹10 premium)
On first call ₹30
On second and final call Balance
Applications were received for 40,000 shares and pro-rata allotment was made to the applicants for 35,000 shares, the remaining applications being refused.
Excess application money was adjusted towards sums due on allotment.
Yogesh, who applied for 700 shares, failed to pay the allotment money and his shares were forfeited immediately after allotment.
First call was made thereafter and all the money due on first call was received. The second and final call was not made.
Pass necessary journal entries for the above transactions in the books of Pushkar Limited.