Question

B Itd issued 10,000 equity shares of Rs.20 each at par (3+7+6+4). Applications 13,000. Company allotted in full on 1t 6,000 applications. 3:2 allotment pro-rata on next 6,000 applications, adjusting the excess application money against allotment. The remaining applications were rejected and their money was refunded. Make journal entries.​

Answer 1

Answer:

Correct option is

B

Rs.1,600

On reissue of forfeited shares, amount of discount allowed on these shares is debited to share forfeited account. The shares are being issued @ Rs.16, therefore, discount allowed is @ Rs.4. Hence (400×4)=Rs.1,600 will be debited to share forfeited account and correct answer is (b).