Question

ILLUSTRATION 58.
X Ltd, issued for Public subscription 40,000 equity shares of 10 each at a
premium of 2 per share payable as under; on application 4 per share; on allotment
s per share (including premium) and on call 3 per share.
Applications were received for 60,000 shares. Allotment was made pro-rata to the
applicants for 48,000 shares, the remaining 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 shares were subsequently forfeited. All the forfeited shares were sold to
Shri Banerjee as fully paid up at 8 per share. Show the journal entries to record the
above transactions

Answer 1

Answer:

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