Rathee Ltd. invited applications for issuing 1,00,000 equity shares of Rs.10 each. The shares were issued at a premium of 60%. The amount was payable as follows:
On Application and Allotment – Rs. 6 per share (including premium Rs. 4)
On First and Final Call – Balance including premium
Applications for 1,90,000 shares were received. The allotment was made as follows :
Category A – Applications for 10,000 shares were rejected.
Category B – Applications for 1,00,000 shares were allotted 50,000 shares.
Category C – Applications for 80,000 shares were allotted 50,000 shares.
Excess money received on application and allotment was adjusted towards sums due on first and final call.
Ali, who belonged to Category B, and had applied for 1,000 shares, paid the entire amount of his share money with application.
Bali, who belonged to Category C, was allotted 1,000 shares, failed to pay the first and final call money. His shares were forfeited and re-issued at Rs. 15 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of Rathee Ltd.