Chapter-1 Accounting for Share Capital Assignments 6
Alfa Limited invited applications for 4,00,000 of its equity shares of Rs 10 each on the following terms :
Payable on application
|
Rs 5 per share
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Payable on allotment
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Rs 3 per share
|
Payable on first and final call
|
Rs 2 per share
|
Applications for 5,00,000 shares were received. It was decided :
(a) to refuse allotment to the applicants for 20,000 shares;
(b) to allot in full to applicants for 80,000 shares;
(c) to allot the balance of the available shares' pro-rata among the other applicants; and
(d) to utilise excess application money in part as payment of allotment money.
One applicant, whom shares had been allotted on pro-rata basis, did not pay the amount due on allotment and on the call, and his 400 shares were forfeited. The shares were reissued @ Rs 9 per share. Show the journal and prepare Cash book to record the above.
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