| On application | Rs. 6 (including Rs. 1 premium) |
| On allotment | Rs. 2 (including Rs. 1 premium) |
| On first call | Rs. 3 (including Rs. 1 premium) |
| On second and final call | Rs. 3 (including Rs. 1 premium) |
Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares. It was decided to utilise excess application money towards the amount due on allotment.
X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited.
Y, who applied for 72 shares failed to pay the two calls and on his such failure, his shares were forfeited,Of the shares forfeited; 80 shares were sold to Z credited as fully paid-up for Rs. 9 per share, the whole of Y’s shares being included. Prepare Journal, Cash Book and the Balance Sheet.
Solution
