um Allotment<br />Q. 21. Ashoka Ltd. invited applications for issuing 5.00.000 equity shares of #10 each at a<br />premium of 34 per share. The amount was payable as follows:<br />On Application<br />34 per share<br />On Allotment<br />36 per share<br />On first and final call<br />84 per share<br />Applications for 8,00,000 shares were received. Shares were allotted to all the applicants<br />on pro-rata basis. Excess money received on applications was adjusted towards sums due<br />on allotment. All calls were made. Parkash who had applied for 4,000 shares failed to pay<br />the amount due on allotment and his shares were forfeited after allotment. Vikas who was<br />allotted 1.500 shares failed to pay the first and final call. His shares were also forfeited.<br />-3.000 of the forfeited shares were re-issued at 19 per share as fully paid up which included<br />all the shares of Vikas.<br />Pass necessary journal entries for the above transactions in the books of Ashoka Ltd. 8<br />OR
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Answer:
Allotment<br />Q. 21. Ashoka Ltd. invited applications for issuing 5.00.000 equity shares of #10 each at a<br />premium of 34 per share. The amount was payable as follows:<br />On Application<br />34 per share<br />On Allotment<br />36 per share<br />On first and final call<br />84 per share<br />Applications for 8,00,000 shares were received. Shares were allotted to all the applicants<br />on pro-rata basis. Excess money received on applications was adjusted towards sums due<br />on allotment. All calls were made. Parkash who had applied for 4,000 shares failed to pay<br />the amount due on allotment and his shares were forfeited after allotment. Vikas who was<br />allotted 1.500 shares failed to pay the first and final call. His shares were also forfeited.<br />-3.000 of the forfeited shares were re-issued at 19 per share as fully paid up which included<br />all the shares of Vikas.<br />Pass necessary journal entries for the above transactions in the books of Ashoka Ltd. 8<br />