(Comprehensive Illustration).
Shagoon India Ltd. issued for subscription 40,000 Equity Shares of Rs. 10 each, at a premium of Rs. 2 per share payable as under:
On application Rs. 2 per share, on allotment Rs. 5 per share (including premium), on first call Rs. 2 per share and on second and final call Rs. 3 per share.
Applications were received for 60,000 shares. Allotment was made on pro rata basis to the applicants for 48,000 shares, remaining applications being refused. Moeny overpaid on application was applied towards amount due on allotment.
Amrit, to whom 1,600 shares were allotted, failed to pay the allotment money and Barun, to whom 2,000 shares were allotted, failed to pay two calls. These were subsequently forfeited after the second and final call.
Pass Journal entries in the books of Shagoon India Ltd. to record the above transactions including the bank entries.