Kotak Ltd. invited application for issuing 1,20,000 equity shares of Rs.10 each at a
premium of Rs.4 per share. The amount was payable as follows:
On application - Rs.4 per share (including premiumRs.2)
On allotment - Rs.4 per share
On first and final call - Rs.6 per share (including premiumRs.2)
Applications for 1,50,000 shares were received. Applications for 20,000 shares were
rejected and pro-rata allotment was made to the remaining applicants. Over
payments on application were adjusted towards sums due on allotment. All calls
were made and were duly received except allotment and final call on 3,000 shares
allotted to Mahesh. These shares were forfeited. Afterwards, one-half of the forfeited
shares were re-issued @ Rs11 per share as fully paid up.
Pass necessary journal entries for the above transactions in the books of Kotak Ltd.