Company Account -OVERSUBSCRIPTION (Pro Rata Allotment) QUESTION - 1
Channel: vikash chakraborty
Date: 06/01/2017

Partial or Pro Rata Allotment : 
Question: 1. Kirloskar Ltd. issued 20,000 shares of Rs.10 each to the public payable Rs.4 on application, Rs.3 on allotment and Rs.3 on first and final call. Applications were received for 25,000 shares. The Directors decided to allot 20,000 shares pro rata basis and surplus of application money was utilized for allotment. Pass Journal entries assuming that the amounts due were received.