Question

stylon ltd. issued 100000 equity share of 10 each of 10 per share , payable as follows - 10 per share on application and balance on allotment. The issue was subscribed and shares were issued to the application . pass journal entries​

Answer 1

Answer:

Explanation:

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).

Answer 2

in the absense of information , securites premium is recorved on allotment . it means only securites premium is recieved on allotment