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.