X Ltd. issued for Public subscription 40,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share payable as under, on application Rs. 4 per share, on allotment Rs. 5 per share (including premium) and on call Rs. 3 per share.
Applications were received for 60,000 shares. Allotment was made pro-rata to the applicants for 48,000 shares, the remaning applications being refused. Money overpaid on application was utilised towards sums due on allotment.
Shri Manoj, to whom 1,500 shares were allotted, failed to pay the allotment and call money and Shri Hussain to whom 2,000 shares were allotted failed to pay the call money. These shres were subsequently forfeited. All the forfeited shares were sold to Shri Banerjee as fully paid up at Rs. 8 per share. show the journal entries to record the above transactions.