Question

Software‘solution India Ltd inviting application for 20,000 equity share of Rs.100 etch, payable Rs. 40 on application, Rs. 30 on allotment and Rs. 30 on call. The company received applications for 32,000 shares. Application for 2,000 shares were rejected and money. returned to Applicants. Applications for 10,000 shares were accepted in full and applicants for 20,000 share allotted half of the number of share applied and excess application money adjusted into allotment. All money received due on allotment and call. Prepare journal and cash book.

Answer 1

Working Note:

Amount due on Allotment for 20,000 Shares @ Rs. 30 per share, 6,00,000

Money adjusted on Application 10,000 shares @ Rs 40 each, 4,00,000

Balance to be received on allotment, 2,00,000