Megha Ltd. invited applications for issuing 90,000 equity shares of Rs. 100 each at a premium of Rs. 60 per share. The amount was payable as follows:

On Application – Rs. 30 per share (including premium Rs. 10)

On Allotment – Rs. 70 per share (including premium Rs. 50)

On First and Final Call – Balance amount

Applications for 1,00,000 shares were received. Shares were allotted on pro-rata basis to all the applicants. Excess money received with application was adjusted towards sums due on allotment. Sudha, a shareholder holding 4,500 shares, failed to pay the allotment money. Her shares were forfeited immediately after allotment. Afterwards the first and final call was made. Rajat, a holder of 3,600 shares, failed to pay the first and final call. His shares were also forfeited. All the forfeited shares were re-issued for Rs. 90 per share fully paid up.

Pass necessary journal entries and prepare Cash Book for the above transactions in the books of Megha Ltd.

Marks-8, CBSE:2018-19/Main/03/Q-16*

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