Problem on pro rata allotment

1677 views 43 replies
can anybody help me to solve this problem? Delhi Automobiles Ltd. issued a prospectus offering 2,00,000 equity shares of Rs. 10 each on the following terms: On application Rs. 2 per shares On allotment Rs. 4 per shares (including premium Re. 1) On first and final call Rs. 5 per share. Application were received for 4,90,000 shares and the allotment was made as under :— (a) 1,30,000 shares were allotted to the applicants of 1,80,000 shares (b) 50,000 shares were allotted to applicants of 1,60,000 shares (c) 20,000 shares were allotted to applicants of 1,50,000 shares Mr. A to whom 520 shares were allotted on pro-rata basis in category (a) did not pay the amount due on allotment and call. His shares were forfeited after necessary notice. Pass necessary journal entries.
Replies (43)
Share capital a/c Dr 5200,. Sec. premium a/ c Dr. 520,. To share allotment. 1680 To share first call. 2600 To share forfeited. 1440
shall I pass all the journal entries or only forfeiture entries??!!
as question says that pass necessary entries hence u should pass all entries.
1.bank 9.8L
to share application. 9.8L
2. sh. app. 4L
to share. cap. 4L
3. sh. all. 8L
to share cap. 6L
to share premium 2L
4. share app. 5.8L
to share all. 5.8L
5. bank 218320
calls in arrear 1680
to share. all. 2.2L
6. final call 10L
to share cap. 10L
7. bank 997400
calls in arrear 2600
to final call. 10L
8. share cap. 5200
security premium 520
to forfeited shares 1440
to share all. 1680
to share final call 2600
shall I provide working notes???

hi can you provide me the working notes?

ur solution is wrong
ya I can provide working note
hey Anisha provide ur solution .
share application 400000, amount utilised towards allotment 380000 , amount utilised towards call 120000. amount refund 80000

how is amount utilised towards call is 1,20,000.plz can u explain me this point

how is amount utilised towards call is 1,20,000.plz can u explain me this point

total AMT received on 50000 share is 300000. amt utilised towards application 100000 ,amt utilised towards allotment 200000 and balancing figure is 20000 which is utilised for first call.
total AMT received on 20000 share is 300000 . Amt utilised towards application 40000, amt utilised allotment 80000 ,amt utilised first call (20000* 5). I.e. 100000


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register