Question

VK Limited issued 15,000 equity shares @ 10 each payable as follows:
Application: 4: Allotment
4; Balance on first and final call.
Applications were received for 20,000 Equity shares. Pro-rata allotment was made to the applicants of 18
shares and remaining applications were rejected and their money was refunded. To whom pro-rata alle
made their excess money received on applications was utilized on allotment only. Give journal entries.​

Answer 1

Solution as given in the picture and sorry for the handwriting ;)