M. M. Ltd. Issued 60,000 equity shares of ₹ 100 each at par, payable as under:
\( \begin{array}{lc}\text { Application } & ₹ 30 \\ \text { Allotment } & ₹ 40 \\ \text { First Call } & ₹ 20 \\ \text { Final call } & \text { balance }\end{array} \)
Public applied for 85,000 shares. The board of directors decided to reject 5,000 shares and pro-rata allotment was made to the remaining applicants.
The excess money received on application could be adjusted against allotment only.
Mr. A to whom 3,000 shares were allotted failed to pay money due on allotment and both the calls. The directors decided to forfeit his shares.
Out of these 1,200 shares were re-issued for ₹ 80 per share as fully paid.
Pass necessary entries.
