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.‘A’ holding 200 shares which were allotted pro-rata failed to pay the amount due on allotment and call. Mr.‘B’ 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 ‘A’ and 40 forfeited shares of ‘B’ were reissued to Mr.’C’ Rs.9 per share. Journalize the transactions.
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.‘A’ holding 200 shares which were allotted pro-rata failed to pay the amount due on allotment and call.
Mr.‘B’ 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 ‘A’ and 40 forfeited shares of ‘B’ were reissued to Mr.’C’ Rs.9 per share. Journalize the transactions.
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