Prorata allotment

Face values is credited to Application money received account and premium to Share premium account

thanks for your reply.
I am asking where is excess adjusted first-in allotment money or in premium?
If the shares are forfeited in the above example, will premium a/c be debited?

Excess of application money received will be kept in Share application money pending allotment account till the due entries are passed for Application money and Premium amount to be received.

After you pass those entries, you'll allocate the amount to both the accounts.

Unsure about which account has to be credited first. I suggest taking this question to experts section. Am following the post. Please comment here if you get an answer.

Thank you