1.

Alfa Limited invited applications for 4,00,000 of its equity shares of Rs 10 each on the following terms : Payable on applicationRs 5 per sharePayable on allotmentRs 3 per sharePayable on first and final callRs 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.

Answer»

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



Payable on allotment



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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