Question

A Ltd. invited applications for issuing 80,000 equity shares of Rs. 10 each at a premium of

Rs. 4 per share. The amount was payable as follows : On application – Rs. 5 per share On allotment – Rs.

9 per share (premium included) Applications were received for 1,40,000 shares and allotment was made

to all applicants on pro-rata basis. Money overpaid on applications was adjusted towards sum due on

allotment. Rajiv, who had applied for 2,100 shares failed to pay the allotment money. His shares were

forfeited. Later on, these forfeited shares were reissued at Rs. 9 per share as fully paid up. Pass the

necessary journal entries in the books of A Ltd. for the above transactions.​

Answer 1

Answer:

The amount was payable as follows : On application – Rs. 5 per share On allotment – Rs.

9 per share (premium included) Applications were received for 1,40,000 shares and allotment was made

to all applicants on pro-rata basis. Money overpaid on applications was adjusted towards sum due on