Question

A limited company offered for public subscription 10,000 shares of Rs. 100 each, payable Rs. 30 on application, Rs. 50 on allotment and Rs. 20 on first and final call. Application received for 15.000 shares and were allotted in the

following manner:

Group
I
ii

Share applied

5,000

10,000

Share allotted

5,000

5,000

According to the terms of issue, the surplus application money could be utilized by the directors against money due on allotment. All the sum due on allotment and call were received except from a shareholder to whom 400 shares of group II were

allotted,

[3+2]

failed to pay allotment and call money.

Required: Journal entries for share allotment and share first and final call.​

Answer 1

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