Reliance ltd issued a prospectus inviting application for 20,000 shares of rs10 each
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Explanation:
The journal entries and the Balance Sheet are prepared and calculated below:
Explanation:
Calculation of Allotment Money Received
Shares Alloted to Ramesh = 400
Shared applied by Ramesh
= 400×24,000/20,000 = 480
Excess application money received = Rs. 160(80× Rs.2)
Allotment money due from Ramesh
=> (2,000 - 160) = Rs. 1,840
Calculation of Capital Reserve
Shares Forfeiture (400 shares of Ramesh)
= Rs. 960
Share Forfeiture (600 shares of Mohan)
= Rs. 3,000
Share Forfeiture of 400 shares of Mohan
= 3,000/600 × 400 = 2,000
Balance in Share Forfeiture Cr.
= 2,960
Balance in Share Forteiture Dr. = Rs. 800
Capital Reserve = Balance in Share
Forfeiture Cr. - Balance in Share Forfeiture Dr.
= 2,960 - 800 = Rs. 2,160
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Answer:
Reliance ltd issued a prospectus inviting application for 20,000 shares of rs10 each
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