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Q18. K.N. Ltd invited applications for issuing 6,00,000 equity shares of Rs. 10 each at a premium ofRs.3 per share. The amount was payable as follows:On Applications and allotmentOn First CallOn Second and Final CallRs. 3 per share.Rs.4 per share.Balance (including premium).Applications for 8,00,000 shares were received. Applications for 50,000 share were rejected and theapplication money was refunded. Shares were allotted to the remaining applications as follows:Category 1: Those who had applied for 4,00,000 share were allotted 3,00,000 share on pro-rata basis.Category II: The remaining applicants were allotted the remaining share on pro-rata basis.Excess application money received with applications was adjusted towards sums due on first call.Rakesh to whom 6,000 shares were allotted failed to pay the first call money. Rakesh belonged tocategory I. His shares were forfeited. The forfeited shares were re-issued at Rs.13 per share fully paidup. The second call was made afterwards and was duly received.Pass necessary journal entries and prepare Cash Book for the above transactions in the books of K.N.Ltd.(8)n58-5651 |
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