Question

5.Shares issued 10,000 @ Rs 10 per share and money received for 13,000 shares. Amount is payable Rs 2 on application, Rs 5 on allotment, Rs 3 on first and final call. If the company rejects the applications for 1,000 shares and allots the remaining on the pro rata basis.​

Answer 1

Explanation:

1)Bank A/c Dr. 26,000

To Share Application A/c 26,000

(Application money received for 12,000 shares)

2) Share Application A/c Dr. 26,000

To Share Capital A/c (10,000 × Rs 2) 20,000

To Share Allotment A/c (2,000 × Rs 2) 4,000

To Bank A/c (1,000 × Rs 2) 2,000

(Amount received on share application adjusted to Share Capital and share allotment and balance is refunded)

3) Share Allotment A/c Dr. 50,000

To Share Capital A/c 50,000

(Amount due on share allotment of 10,000 share @Rs 5 per share)

4) Bank A/c Dr. 46,000

To Share Allotment A/c 46,000

(Allotment money received, Rs 50,000 – Rs 4,000)