DDG Ltd. invited applications for issuing $\displaystyle 75,000$ equity shares of T $\displaystyle 75$ each at a premium of $\displaystyle 25$ per share. The amount was payable as follows : On Application and Allotment $\displaystyle 40$ per share On First and Final Call Balance (including premium) Applications for $\displaystyle 1,25,000$ shares were received. Applications for $\displaystyle 25,000$ shares were rejected and the application money was refunded. Shares were allotted to the remaining applicants on pro-rata basis. Excess money received with applications was adjusted towards sums due on first and final call. Govind, to whom $\displaystyle 1,500$ shares were allotted, failed to pay the first and final call. Namita who had applied for $\displaystyle 2,000$ shares also failed to pay the first and final call. Shares of both Govind and Namita were forfeited. Pass the necessary journal entries for the above transactions in the books of DDG Ltd.

OR

Karan Ltd. invited applications for issuing $\displaystyle 80,000$ equity shares of T $\displaystyle 80$ each at par. The amount was payable as follows : On Application and Allotment $\displaystyle 30$ per share - T On First and Final Call Balance Applications for $\displaystyle 1,40,000$ shares were received. Applications for $\displaystyle 20,000$ shares were rejected and the money was refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on first and final call. Ravi, who had applied for $\displaystyle 1,200$ shares, paid his entire share money along with his application. Chaman, to whom $\displaystyle 2,400$ shares were allotted, failed to pay the first and final call. Chaman's shares were forfeited. Pass necessary journal entries for the above transactions in the books of Karen Ltd. Open 'Calls -in- treats Account' and 'Calls -in- dance Account', wherever necessary.

In the books of DDG Ltd. Journal Date Particulars L.F. Dr. Cr. Amount(₹) Amount(₹) Bank A/c Dr. $\displaystyle 50,00,000$ To Equity Share Application and AllotmentA/c $\displaystyle 50,00,000$ (Amount received at the time of application on $\displaystyle 1,25,000$ equity shares) Equity Share Application and Allotment Dr. $\displaystyle 50,00,000$ A/c To Equity Share Capital A/c $\displaystyle 30,00,000$ To Bank A/c $\displaystyle 10,00,000$ To Calls in Advance A/c $\displaystyle 10,00,000$ (Money received at the time of application transferred to share capital account, amount refunded for applications rejected and balance transferred to call in advance account) Equity Share First and Final Call A/c Dr. $\displaystyle 45,00,000$ To Equity Share Capital A/c $\displaystyle 26,25,000$ To Securities Premium A/c $\displaystyle 18,75,000$ (First and final call due on $\displaystyle 75,000$ equity shares @ ₹$\displaystyle 60$ per share including premium of ₹$\displaystyle 25$ per share) Bank A/c Dr. $\displaystyle 33,60,000$ Calls in Advance A/c Dr. $\displaystyle 10,00,000$ Calls in Arrears A/c Dr. $\displaystyle 1,40,000$ To Equity Share First and Final Call A/c $\displaystyle 45,00,000$ (First and final call money received except for $\displaystyle 3,000$ equity shares) Bank A/c Dr. $\displaystyle 33,60,000$ Calls in Advance A/c Dr. $\displaystyle 10,00,000$ To Equity Share First and Final Call A/c $\displaystyle 43,60,000$ (First and final call money received except for $\displaystyle 3,000$ equity shares) Equity Share Capital A/c Dr. $\displaystyle 1,12,500$ Securities Premium A/c Dr. $\displaystyle 37,500$ To Forfeited Shares A/c $\displaystyle 80,000$ To Calls in Arrears A/c/ $\displaystyle 70,000$ To Equity Share First and Final call A/c ($\displaystyle 1,500$ equity shares of ₹$\displaystyle 75$ each, forfeited for non-payment of first and final call) Equity Share Capital A/c Dr. $\displaystyle 1,12,500$ Securities Premium A/c Dr. $\displaystyle 37,500$ To Forfeited Shares A/c $\displaystyle 80,000$ To Calls in Arrears A/c/ $\displaystyle 70,000$ To Equity Share First and Final call A/c ($\displaystyle 1,500$ equity shares of ₹$\displaystyle 75$ each, forfeited for non-payment of first and final call) Q.(b) Karan Ltd. invited applications for issuing $\displaystyle 80,000$ equity shares…………… Ans. In the books of Karan Ltd. Journal Date Particulars L.F. Dr. Cr. Amount(₹) Amount(₹) Bank A/c Dr $\displaystyle 42,60,000$ To Equity Share Application and Allotment A/c $\displaystyle 42,60,000$ (Amount received at the time of application on $\displaystyle 1,40,000$ equity shares) Equity Share Application and Allotment A/c Dr. $\displaystyle 42,60,000$ To Equity Share Capital A/c $\displaystyle 24,00,000$ To Bank A/c $\displaystyle 6,32,000$ To Calls in Advance A/c $\displaystyle 12,28,000$ (Money received at the time of application transferred to share capital account, amount refunded for applications rejected and balance transferred to call in advance account) Equity Share First and Final Call A/c Dr. $\displaystyle 40,00,000$ To Equity Share Capital A/c $\displaystyle 40,00,000$ (First and final call due on $\displaystyle 80,000$ equity shares @ ₹$\displaystyle 50$ per share) Bank A/c Dr. $\displaystyle 26,88,000$ Calls in Advance A/c Dr. $\displaystyle 12,28,000$ Calls in Arrears A/c Dr. $\displaystyle 84,000$ To Equity Share First and Final Call A/c $\displaystyle 40,00,000$ (First and final call money received except for $\displaystyle 2,400$ equity shares) Equity Share Capital A/c Dr. $\displaystyle 1,92,000$ To Forfeited Shares A/c $\displaystyle 1,08,000$ To Calls in Arrears A/c $\displaystyle 84,000$ ($\displaystyle 2,400$ equity shares of ₹$\displaystyle 80$ each forfeited for non-payment of first and final call)