M. Ltd. issued 50,000 Equity Shares of Rs.10 each to the public, at a price of
Rs.12 per share, which was payable on application Rs.5 (including premium), on allotment
Rs.4 and the balance was payable on 1-6-1998.
Applications were received for 70,000 shares when the subscripttion list was closed on 31-1-
98. Out of the money received, Rs.40,000 was returned and Rs.60,000 was transferred to
allotment. Allotment money was paid on 15-2-1998. The amount due on first call was paid
on 1-6-1998 with the exception of 500 shares . These 500 shares were forfeited on 30-9-
1998 and were reissued at Rs.8 per share on 1-11-1998.
Give Journal Entries.
Hi can you paste a screen shot please of the question please because there appears to be a discrepancy in the data because
SEVENTY THOUSAND shares applications money including premium will be debited to bank and credited to capital and premium accounts.
Now, TWENTY THOUSAND extra applications received is amounting to ONE LAKH RUPEES All of this should be returned and the question is transferring that FORTY 5OUSAND RUPPES back to applicants and SIXTY THOUSAND RUPEES to allotment which is not possible. This money is to be returned back.
Ya need to account for SIXTY THOUSAND
CAclubindia
