Dynamic Ltd issued 10,000 equity shares of Rs.10 each at a premium of Rs.2 per share. The amount payable as : Rs. 2 on application, Rs.5 on allotment (including premium) and the rest on first and final call. Application were received for 12,000 shares. Excess application money is refunded to applicants. All monies due are received except the first and final call monies on 1,000 shares . Show the journal entries.
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The amount received on shares issued is Rs 12,00,000. The application money is Rs 2 per share and application received is 1,20,000 then application money received is Rs 2,40,000. But application issued were still 100000 as it is case of over-subscription and hence application money received on issuance of share is Rs 2,00,000. There amount to refunded is Rs 40,000 (Rs 2,40,000-Rs 2,00,000).
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