Question

High hopes Ltd. made an issue of 3,00,000 shares (equity) of 10 cach payable as follows :on application
* 5 per share (including premium)
on allotment
4 per share
on call 3
рег
share
Applications were received for 4,20,000 shares. No allotment was made for 20,000 shares applied for
and the amount received thereon was refunded along with letters of regret. 3,00,000 shares were allotted
pro-rata) amongst the applicants for 4,00,000 shares, the excess application money being adjusted with
the amount due on allotment. Mr. Jacob who had applied for 1,200 shares failed to pay the allotment
money. Mr. Kashyap another shareholder holding 1,500 shares failed to pay the call money. Shares of
Mr. Jacob were forfeited after the call was made. 500 shares out of the forfeited shares were re-issued
as fully paid on payment of 9 per share to Mr. Mutu. Show the journal entries in the books of the
company.​

Answer 1

Bank A/c Dr 21,00,000

To equity share applications A/c 21,00,000