Question

Sonu Company issued Rs. 10,00,000 new capital divided in to Rs. 100 shares at a premium
of Rs. 20 per share payable thus:
Rs. 10 per share on application;
Rs. 40 per share and Rs. 10 premium on allotment; and
Rs. 50 per share and Rs. 10 Premium on final payment.
Over-payments on application were to be applied towards sums due on allotment and over-
payments on application exceeding sums due on allotment were to be returned. Where no
allotment was made, money was to be returned in full. The issue was over-subscribed to the
extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and
applicants for 2,000 shares were sent letters of regret and application deposits were returned to
them. All the money due on allotment and final call was dully received. Make the necessary entries
in the Company's books to record the above transactions.
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Answer 1

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