(Forfeiture of Shares which were Issued at Par).
Airdrop Ltd. issued 1,00,000 Equity Shares of Rs. 10 each on the following terms:
Rs. 3 payable on application, Rs. 4 on allotment, the balance as and when required.
Applications were received for 1,40,000 Equity Shares. Allotment was made as under:
80,000 applications were given 80,000 Equity Shares,
50,000 applications were given 20,000 Equity Shares, and
10,000 applications were not allotted any share.
A shareholder who applied for 1,000 Equity Shares and was given 1,000 shares failed to pay the allotment money. His shares were forfeited.
Pass Journal entries to record the above transactions.

Explanation

Note: 20,000 shares were allotted to 50,000 applicants, surplus application money Rs. 90,000 (i.e., 30,000`xx`Rs. 3) was adjusted towards Shares Allotment Rs. 80,000 (i.e., 20,000 `xx`4) and balance Rs. 10,000 was refunded to the applicants.