Question

(Oversubscription / prorata allotment) Pilot Ltd. issued 10000 equity shares of $10 each,payable$2 on application ,$ 3 on allotment and balance on first and final call. Appications were received for 12000 shares and shares were alloted as under! Applicants for 8000 shares were alloted in full,those who applied for 3000 shares were alloted 2000 shares and application for 1000shares were rejected .Whole of the money was called and received .pass the necessary journal entries in the books of company.

Answer 1

Below are the necessary journal entries

Step-by-step explanation:

1) Bank account dr 24,000

To share application 24,000

2)Share application dr 24,000

To share capital 20,000

To share allotment 2,000

To bank account 2,000

3) Share allotment dr. 30,000

To share capital 30,000

4) Bank account dr 28000

To share allotment 28000

5) Share first and final call dr. 50,000

To share capital 50,000

6) Bank account dr 50,000

To share first and final call 50,000