ABC Ltd. issued a prospectus for inviting application from the public for 10,000 equity shares of" $ 10 each. The amounts were payable as follows: $3 on Application, $2 on Allotment & the balance as and when called. Applications were received for 12,000 shares & the allotment was made as follows: Full applications for 8,000 shares 2,000 shares shares to remaining applicants and the excess application money is to be adjusted towards allotment. totally reject applications for 2,000 shares Pass Journal entries in the books of the company assuming that all allotment money was received and the call was not made.
ABC Ltd. issued a prospectus for inviting application from the public for 10,000 equity shares of" $ 10 each. The amounts were payable as follows: $3 on Application, $2 on Allotment & the balance as and when called. Applications were received for 12,000 shares & the allotment was made as follows: Full applications for 8,000 shares 2,000 shares shares to remaining applicants and the excess application money is to be adjusted towards allotment. totally reject applications for 2,000 shares Pass Journal entries in the books of the company assuming that all allotment money was received and the call was not made.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
ABC Ltd. issued a prospectus for inviting application from the public for 10,000 equity
shares of" $ 10 each. The amounts were payable as follows: $3 on Application, $2 on
Allotment & the balance as and when called.
Applications were received for 12,000 shares & the allotment was made as follows:
Full applications for 8,000 shares
2,000 shares shares to remaining applicants and the excess application money is
to be adjusted towards allotment.
totally reject applications for 2,000 shares
Pass Journal entries in the books of the company assuming that all allotment money was
received and the call was not made.
Transcribed Image Text:1. ABC Ltd. issued a prospectus for inviting application from the public for 10,000 equity
shares of $ 10 each. The amounts were payable as follows: $3 on Application, $2 on
Allotment & the balance as and when called.
Applications were received for 12,000 shares & the allotment was made as follows:
Full applications for 8,000 shares
2,000 shares shares to remaining applicants and the excess application money is
to be adjusted towards allotment.
totally reject applications for 2,000 shares
Pass Journal entries in the books of the company assuming that all allotment money was
received and the call was not made.
2. The following are summarized Balance Sheets as on March 31, 2020
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