Alfa Limited invited applications for 4,00,000 of its equity shares of

1.	Alfa Limited invited applications for 4,00,000 of its equity shares of Rs.10 each on the following terms. (Rs)Payable on application5 per sharePayable on Allotment3 per sharePayable on First and Final Call2 per share Application 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 utilize 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.
Answer» Alfa Limited invited applications for 4,00,000 of its equity shares of Rs.10 each on the following terms. $\begin{matrix} (Rs) Payable on application & 5 per share Payable on Allotment & 3 per share Payable on First and Final Call & 2 per share \end{matrix}$ Application 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 utilize 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.

Alfa Limited invited applications for 4,00,000 of its equity shares of Rs.10 each on the following terms. (Rs)Payable on application5 per sharePayable on Allotment3 per sharePayable on First and Final Call2 per share Application 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 utilize 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.

Answer» Alfa Limited invited applications for 4,00,000 of its equity shares of Rs.10 each on the following terms.

\begin{matrix} (Rs) Payable on application & 5 per share Payable on Allotment & 3 per share Payable on First and Final Call & 2 per share \end{matrix}

Application 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;

(d) To utilize 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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