Question

18. Metallic Ltd. Invited application for 40,000 equity shares of ` 50 each issued at a

premium of ` 10 per share. The amount was payable as follows :

 On application and allotment 20 per share. Balance ( Including Premium) on first

and final call. Application were received for 70,000 shares.

 Application for 20,000 shares were rejected and pro-rata allotment was made to

the remaining applicants. First and final call was made and duly received expect

on 400 shares allotted to Nitesh and his shares were forfeited.

 Journalise the above transactions.​

Answer 1

Answer:

please check the attachment

Answer 2

Answer:

The transactions can be journalized as follows:

Explanation:

Application money received:

Debit: Bank (for the amount received from the applicants)

Credit: Application Money Received (for the liability towards the applicants)

Allotment of shares:

Debit: Share Capital (for the equity shares issued)

Credit: Application Money Received (for the liability towards the applicants)

Rejection of applications and pro-rata allotment:

Debit: Application Money Received (for the liability towards the rejected applicants)

Credit: Share Capital (for the equity shares issued)

First and final call received:

Debit: Share Capital (for the equity shares issued)

Credit: Bank (for the amount received from the applicants)

Forfeiture of shares:

Debit: Share Forfeiture (for the equity shares forfeited)

Credit: Share Capital (for the equity shares issued)

It's important to note that the above journal entries are only a representation of the transactions and the actual entries would require more detailed information such as account numbers and references, and would also depend on the accounting system being used.

for more visit - https://brainly.in/question/47964458

#SPJ3