A Co. Ltd. was registered with a nominal capital of Rs.1,00,000 in Equity Shares of Rs.10 each. It offered to the public 6,000 shares for subscription, The applications were, however, received for 8,000 shares. The Directors had to reject the applications for 1,000 shares and to return the money received thereon. The application money received on the other 1,000 shares was adjusted to Allotment Account. The amount payable on shares was: Rs.2 per share on application, Rs.4 per share on allotment and the balance on first call. One shareholder holding 100 shares failed to pay the first call money and as a result his shares were forfeited,
Pass necessary Journal entries and prepare Cash Book to record the abovetransactions.
