Deepak Manufacturing Co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of ₹ 10 each payable as follows :
₹ 2 on Application
₹ 4 on Allotment
₹ 2 on the First call
₹ 2 on Final call
The application was received for 1,20,000 equity shares. The Directors decided to reject excess applications and refunded application money on that. The company received all money.
Pass Journal Entries in the books of a company.
