Accountancy, asked by shambhuupw, 2 months ago

14. Payal Limited issued 60,000 equity shares of rs 10 each at a premium of rs 2.50 per share (payable
application). The amount payable on allotment was fixed at 4 per share and also rs4 was fixed
On
call.
Total applications received were for 1,10,000 shares and after consulting the Stock Exchange, the
following scheme of allotment was decided upon :
A
B
Category
С
Group of Shares in Application
1-100
101-500
over 500
Number of applications received
1,200
175
5
Number of shares applied for
70,000
35,000
5,000
Number of shares alloted
42,000
14,000
4,000
It was decided that the excess amount received on application would be utilised in payment of
allotment money and surplus if any would be refunded to the applicants.
Sangeeta, who was one of the applicant belonging to category A and had applied for 100 shares
,
defaulted in payment of allotment and call monies. Namrata who was belonging to category 'C' and
had been allotted 800 shares was failed to pay the call money. These shares were forfeited after the
respective calls were made and their shares were re-issued at 8 and 3 6 per share respectively a
fully paid up.
Show the necessary journal entries in the books of Payal Limited.
and not morning
[Answer : Share Forfeiture Account transferred to Capital Reserve * 1,780.]

Answers

Answered by nknitish8

Answer:

14. Payal Limited issued 60,000 equity shares of rs 10 each at a premium of rs 2.50 per share (payable

application). The amount payable on allotment was fixed at 4 per share and also rs4 was fixed

call.

Total applications received were for 1,10,000 shares and after consulting the Stock Exchange, the

following scheme of allotment was decided upon :