DDG Ltd. invited applications for issuing 75,000 equity shares of ₹75 each at a premium of ₹25 per share. The amount was payable as follows: 

On Application and Allotment  – ₹40 per share    

On First and Final Call  – Balance (including premium)  

Applications for 1,25,000 shares were received. Applications for 25,000 shares were rejected and the application money was refunded. Shares were allotted to the remaining applicants on pro-rata basis.  

Excess money received with applications was adjusted towards sums due on first and final call. Govind, to whom 1,500 shares were allotted, failed to pay the first and final call. Namita who had applied for 2,000 shares also failed to pay the first and final call. Shares of both Govind and Namita were forfeited.   

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

Marks-6, CBSE: 2024-25/Zone-6/Set-1/Q-23(a)