Company accounts

Subhas Ltd. invited applications for 20000 shares of Rs. 10 each at a premium of Rs.2 per share payable Rs.3 on application; Rs.7 on allotment including premium and the balance on first and final call. Applications for 25000 shares were received. It was decided: · To refuse allotment to the applicants for 1000 shares. · To allot in full to applicants for 4000 shares. · To allot the balance of shares pro-rata among the other applicants of the remaining applicants. · To utilize the excess application money in part payment of allotment money. Mr.â??Aâ?? holding 200 shares which were allotted pro-rata failed to pay the amount due on allotment and call. Mr.â??Bâ?? holding 100 shares to whom full allotment was made failed to pay the call money. Shares of both A and B were forfeited. 160 forfeited shares of â??Aâ?? and 40 forfeited shares of â??Bâ?? were reissued to Mr.â??Câ?? Rs.9 per share. Journalize the transactions

Priya Anandan

CA Inter

★ 810

18-Aug-21 12:16

616