Sunstar Ltd. invited applications for issuing 2,00,000 equity shares of Rs. 50 each. The amount was payable as follows:
On Application – Rs. 15 per share
On Allotment – Rs. 10 per share
On First and Final Call – Rs. 25 per share
Applications for 3,00,000 shares were received. Allotment was made to the applicants as follows:
Category | No. of Shares Applied | No. of Shares Allotted |
I | 2,00,000 | 1,50,000 |
II | 1,00,000 | 50,000 |
Excess money received with applications was adjusted towards sums due on allotment and calls. Namita, a shareholder of Category I, holding 3,000 shares failed to pay the allotment money. Her shares were forfeited immediately after allotment. Manav, a shareholder of Category II, who had applied for 1,000 shares failed to pay the first and final call. His shares were also forfeited. All the forfeited shares were reissued at Rs. 60 per share fully paid up.
Pass necessary journal entries and prepare Cash Book for the above transactions in the books of Sunstar Ltd.
Marks-8, CBSE:2018-19/Main/03/Q-16*
