Ganesh Limited offered to the public 1,00,000 equity shares of 10 each at a premium of
*2 per share, payable as follows:
On Application
On Allotment
On First call
On Second and Final Call
₹3
4 (including premium)
₹3
₹2
Applications were received for 1,60,000 shares.
All applications were placed under four categories and allotment was made as follows:
Category A: To applicants of 40,000 shares in full
Category B: To applicants of 60,000 shares
Category C: To applicants of 30,000 shares
Category D: To applicants of 30,000 shares
40,000 shares
20,000 shares
Nil
Except in the case where applications were wholly rejected, excess application money was
not to be refunded but to be adjusted against money due on allotment and calls.
Arun, an applicant under category B who applied for 2,400 shares failed to pay the
allotment money and on his failure to pay the first call his shares were forfeited.
Bimal, an applicant under category C who applied for 1,200 shares failed to pay both the
calls and his shares were also forfeited after the second and final call.
All the forfeited shares were reissued to Charan as fully paid for ₹8.50
Show Cash-book and Journal entries.
per share.