Fashion Garments Ltd. invited applications for issuing 10,000 Equity Shares of 10 each. The amount was payable as follows: | Installment | Amount per share | | :-------------------------- | :--------------- | | On Application | 1 | | On Allotment | 2 | | On First call | 3 | | On Second and Final Call | 4 |
The issue was fully subscribed. Ram to whom 100 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately after the allotment. Shyam to whom 150 shares were allotted, failed to pay the first call. His shares were also forfeited after the first call. Afterwards the second and final call was made. Mohan to whom 50 shares were allotted failed to pay the second and final call. His shares were also forfeited. All the forfeited shares were re-issued at 9 per share fully paid-up.
Pass necessary Journal entries in the books of Fashion Garments Ltd. [Dec. 2021, 15 Marks]; [RTP Jan. 2025; Modified-Figures-3X]