Rathi Ltd. invited applications for issuing 1,00,000 shares of Rs. 10 each at a premium of Rs. 2 per share. Amount per share was payable as follows :
On Application – Rs. 4 (including premium Rs. 1)
On Allotment – Rs. 4 (including premium Rs. 1)
On First and Final Call – Balance
Applications were received for 1,50,000 shares and allotment was made to the applicants as follows:
- Applicants of 80,000 shares were allotted 60,000 shares.
- Applicants of 50,000 shares were allotted 40,000 shares.
- No shares were allotted to the remaining applicants and their application money was returned.
Yatin, who belonged to category (ii) and who had applied for 5,000 shares failed to pay the allotment and call money. His shares were forfeited.
Later, half of Yatin’s forfeited shares were reissued @ Rs. 18 per share as fully paid up.
Pass the necessary journal entries to record the above transactions in the books of Rathi Ltd.