A Company invited applications for 50,000 equity shares of Rs. 10 each on the foll
Channel: Doubtnut
Date: 2020-04-26

A Company invited applications for 50,000 equity shares of Rs. 10 each on the following terms : On application Rs. 3, On allotment Rs. 2 and on Ist and Final call Rs. 5 Applications were received for 1,10,000 shares. It was decided :  (i) To refuse allotment to the applicants for 10,000 shares,  (ii) To allot 50% to Mr. X who has applied for 20,000 shares,  (iii) To allot in ful to Mr. Y who applied for 10,000 shares,  (iv) To allot balance of the available shares pro-rata among the other applications, and  (v) To utilise excess application money in part payment of allotment and final call.  Give journal entries assuming that the entire sum due is received in full. Call is made after two months of allotment and 6% p.a. interest is allowed on calls in advance.