Swaraj & Co. was registered with an authorised capital of ₹ 5,00,000 divided into 50,000 shares of ₹ 10 each. The company issued 30,000 of these shares to the public, which were payable as ₹ 2 per share on application, ₹ 4 per share on allotment and the balance three months later. Applications for 46,000 shares were received on which the Directors allotted as follows:
Applications for 20,000 shares Full
Applications for 25,000 shares 40%
Applications for 1,000 shares Nil
₹ 86,000 was realised on account of the allotment money (excluding the amount carried from the application money) and ₹ 1,00,000 on account of call. The Directors decided to forfeit those shares on which the allotment money was overdue. Pass the Journal entries in the company’s books.
Anurag Pathak Changed status to publish March 10, 2024
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