A constrained organization issued a plan welcoming applications for 2,000 shares of Rs. 10 every at a premium of Rs. 2 per offer payable as takes after:
On Application – Rs. 2
On Allotment – Rs. 5 (counting premium)
On First Call – Rs. 3
On Second and Final Call – Rs. 2
Applications were gotten for 3,000 shares and distribution was made professional rata to the candidates of 2,400 offers. Cash overpaid on applications was utilized because of total due on allocation.
Ramesh, to whom 40 shares were designated, neglected to pay the allocation cash and on his ensuing inability to pay the first call, his shares were relinquished. Mohan, the holder of 60 shares neglected to pay the two calls and his shares were relinquished after the second and last call.
Of the shares relinquished, 80 shares were sold to Krishna credited as completely paid for Rs. 9 for each offer, the entire of Ramesh's offer being incorporated. Show diary and money book sections and the Balance Sheet.