Question

Batra Ltd . issued 20000 shares of rs100 each at a premium of rs25 per share , payable as follows : rs 20 per share on application rs 45 per share on allotment(including premium of rs 15). ra 60 per share on first and final call*(including premium of rs 10. The issue was obersubscribed by 10000 shares. Applicants of 8000 shars were alloted only 1000 shares and applicants of 1000shares were sent letter of regret . Excess amount recieved at the time of application was to be adjusted only aginst allotment and overpayments exceeding the amount due on allotment were to be refunded . All the money due at the time of allotment and call was duly received . Pass journal enteries ​

Answer 1

Answer:

Pro rata allotment= 21000:19000

Shareholders funds= 125000

Answer 2

Following are the journal entries for Batra ltd. issuing 20,000 shares of ₹100 each at a premium of ₹25 per share :

1) bank a/c   dr.  6,00,000

                    to share application a/c  6,00,000

( being money received on application of shares )

2) share application a/c  dr.  6,00,000

                                        to share capital a/c   4,00,000

                                        to bank a/c                  20,000

                                        to share allotment a/c  1,80,000

( being application amount transferred to share capital and adjusted on allotment)

3) share allotment a/c   dr.  9,00,000

                                      to share capital a/c   6,00,000

                                      to securities premium a/c  3,00,000

( being allotment @ ₹30 and premium @ ₹15 due )

4) bank a/c  dr.   9,00,000

                           to share allotment a/c  9,00,000

( being money received on allotment )