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JJK Ltd invited application or issuing 150,000 equity shares of 10 each at par. The amount was payable as follows:
On Application: ₹ 2 per share
On Allotment :  ₹ 4 per share
On First and Final Call: Balance Amount
The issue was oversubscribed three times. Applications for 30% shares were rejected and money refunded. Allotment was made to the remaining applicants as follows:
     Category                              No of Shares Applied                   No of shares Allotted
       I                                                 80,000                                  40,000
      II                                                 25,000                                  10,000
Excess money paid by the applicants who were allotted shares was adjusted towards the sums due on allotment.
Deepak, a shareholder belonging the Category I, who had applied for 1,000 shares, failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay the allotment money. Raju belonged to category II. Shares of both Deepak and Raju were forfeited immediately after allotment. Afterwards, first and final call was made and was duly received. The forfeited shares of Deepak and Raju were reissued at 11 per share fully paid up.
Pass necessary journal entries for the above transactions in the books of the company.

Answer
JJK Ltd invited application or issuing 150,000 equity shares of 10 eac

JJK Ltd invited application or issuing 150,000 equity shares of 10 eac
Working Notes:
JJK Ltd invited application or issuing 150,000 equity shares of 10 eac

Deepak:
Applied          1,000
Alloted           1000 space cross times space fraction numerator 40 comma 000 over denominator 80 comma 000 end fraction space equals space 500
Amount paid at time of application = 1,000 x 2 = 2000
Less: Adjusted towards application = 500 x 2 =   (1000)
Excess = 2000 - 1000 = 1000

Amount due on Allotment = 500 x 4 = 2,000
Less: Excess Adjusted                    =   (1,000)
Calls in arrears  = (2000 - 1000) = 1000

Raju:
Alloted 100 shares
Applied = Applied equals space fraction numerator 25 comma 000 over denominator 10 comma 000 end fraction space cross times space 100 space equals space 250
Amount paid at time of application = 250 x 2 = 500
Less: Adjusted with Application = 100 x 2 = 200
Excess: (500 - 200) = 300
Amount due on allotment = 100 x 4 = 400
Less: Excess Adjusted                    = (300)
Call in Arrears = (400 - 300) = 100