(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.