Paliwal Exports Ltd. with a share capital of ₹ 10,00,000 divided into 20,000 shares of ₹ 50 each offers the shares to the public as under:

Paliwal Exports Ltd. with a share capital of ₹ 10,00,000 divided into 20,000 shares of ₹ 50 each offers the shares to the public as under:

₹ 15 per share payable on application; ₹ 15 per share payable on allotment; ₹ 10 per share payable on 1st call; and ₹ 10 per share payable on second call.

Shareholder ‘A’ who holds 200 shares has paid only the application money.

Shareholder ‘B’ who holds 300 shares has paid only the application and allotment money.

Shareholder ‘C’ who holds 400 shares has paid application, allotment and first call money.

The company forfeits the shares of the above shareholders who have not paid the arrears and re-issued 600 of these shares at a discount of 20%.

Journalise the above transactions including entries relating to Bank in the books of Paliwal Exports Ltd.

[Ans. Amount received on allotment ₹ 2,97,000; on first call ₹ 1,95,000 and on second call ₹ 1,91,000. Share Forfeiture Account will be credited by ₹ 28,000 on forfeiture of shares. Balance of Share Forfeiture Account ₹ 22,000.