Hello xperts.. Aftrmaking the pro rata allotment journal entry, the next entry is allotment due entry. How do we calculate it? Actlly in the study material provided by meritnation, there are comprehensive examples... The allotment due is calculated differently in the first and second example.. The first one includes discount and also makes discount debit entry.. And the second one excludes discount and also makes the discount debit entry...
I m confused..!!! Please help me out..!!
Dear Student, this was our one of the important rationale while framing such questions. You see the basic difference between the two questions lies the difference between the two words 'after or excluding'' and 'including'. We have extensively covered this point in the lesson- 3 of this chapter. Follow the link below and refer to the examples under the topic of 'Two aspects of Issue of Shares at Discount- Excluding and Including'. Do go through the related videos to enhance your understanding over these topics.
https://www.meritnation.com/cbse/class12-commerce/studymaterial/accountancy/company-accounts-and-analysis-of-financial-statements/accounting-for-share-capital/436_2433_5885#slide1_Issue of Shares for Cash- At Par and Discount
https://www.meritnation.com/cbse/class12-commerce/studymaterial/accountancy/company-accounts-and-analysis-of-financial-statements/accounting-for-share-capital/436_2433_5885#slide1_Issue of Shares for Cash- At Par and Discount