can u tell me how to solve pro rata questions..???/

pro-rata questions are simple. the excess on application has to be used in allotment. the receipt entry in allotment is : bank a/c dr

                        share application a/c dr.

                           to share allotment

but remember, the application amount you transfer to the share capital shouldn't include any excess.

first of all mulitply bth i.e the applied n the alloted amt with the application amt the take out the difference n the is there exsist some remaining value the again foloow the same til u get the nagative anwer to it if u get one so as negetive then stop n take the value above... n the put it as share allotment which signifies the value which is to be adjusted.

to solve pro rata problem is to follor the questien s bit by bit

entries are

for application

in case of exces

Bank A/C  dr (total amount recived)

To shareapplication A/c 

share application a/c dr

toshare capital a/c