(Forfeiture of Shares which were Issued at Par). Airdrop Ltd. issued 1,00,000 Equity Shares of Rs
Channel: Doubtnut
Date: 2020-03-29

(Forfeiture of Shares which were Issued at Par). Airdrop Ltd. issued 1,00,000 Equity Shares of Rs. 10 each on the following terms: Rs. 3 payable on application, Rs. 4 on allotment, the balance as and when required. Applications were received for 1,40,000 Equity Shares. Allotment was made as under: 80,000 applications were given 80,000 Equity Shares, 50,000 applications were given 20,000 Equity Shares, and 10,000 applications were not allotted any share. A shareholder who applied for 1,000 Equity Shares and was given 1,000 shares failed to pay the allotment money. His shares were forfeited. Pass Journal entries to record the above transactions.