Nitro Paints Ltd., invited applications for issuing 1,60,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The amount was payable as follows :
On application - Rs. 6 per share (including premium Rs. 1)
On allotment - Rs. 3 per share (including premium Rs. 1)
the balance - on first final call
Applications for 1,80,000 shares received. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payment on application were adjusted towards sums due on allotment. All calls were made and were duly received except allotment and final call from Aditya who was allotted 3,200 shares. His shares were forfeited. Half of the forfeited shares were re-issued for Rs. 43,000 as fully paid up. Pass necessary journal entries for the above transactions in the books of Nitro Paints Ltd.
