Kandla Co. Ltd. made an issue of 80,000 equity shares of ₹ 20 each payable as follows:
Application: ₹ 5 per share
Allotment: ₹ 10 per share
First Call: ₹ 3 per share
Second and Final Call: ₹ 2 per share
The company received applications for 90,000 shares of which applications for 10,000 shares were rejected and money refunded. All the shareholders paid up to the second call except Sachin, the allottee of 4,000 Shares, who failed to pay a final call.
Pass Journal Entries for the above transaction in the books of Kandla Co. Ltd.
