XL Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each at par. The amount was payable as follows:
On Application Rs. 3 per share.
On Allotment Rs. 4 per share.
On First and Final Call Rs. 3 per share.
The issue was over-subscribed by three times. Applications for 20% shares were rejected and the money refunded. Allotment was made to the remaining applicants as follows:
Category | No. of Shares Applied | No. of Shares Allotted |
I | 1,60,000 | 80,000 |
II | 80,000 | 20,000 |
Excess money received with applications was adjusted towards sums due on allotment and first and final call. All calls were made and were duly received except the final call by a shareholder belonging to Category I who has applied for 320 shares.
His shares were forfeited. The forfeited shares were re-issued at Rs. 15 per share fully paid up.
Pass necessary Journal entries for the above transactions in the book of XL Ltd. open calls in-arrears and calls in advance account whenever required.
Marks-8, CBSE:2016-17/Main-DL/Q-17*