The Delhi Cloth Mills Ltd. invited applications for 10,000 Shares of Rs. 100 each at a
Channel: Doubtnut
Date: 2020-04-26

The Delhi Cloth Mills Ltd. invited applications for 10,000 Shares of Rs. 100 each at a premium of Rs. 10 each payable as below :  Rs. 50 on Application,  Rs. 35 on Allotment (including premium), and  Rs. 25 on Call.  Applications for 15,000 shares were received. Applicants for 2,500 shares did not get any allotment and their money returned. Allotment was made pro-rata to the remaining applicants.  Mr. A was allotted 400 shares. He failed to pay the amount due on allotment and call money. The company forfeited his shares and subsequently re-issued at Rs. 105 per share.  Show the journal entries in the books of the company.