O Limited issued a prospectus offering 2,00,000 equity shares of Rs. 10 each, @ a premium of Rs. 2 per share, payable as follows:On application Rs. 2.50 per shareOn allotment Rs 4.50 per share (including premium)On first call (three months from allotment) Rs. 2.50 per shareOn second call (three months after call) Rs. 2.50 per share

Subscriptions were received for 3,17,000 shares on April 23, 2002 and the allotment made on April 30, was as under:

1. Allotment in full (two applicants paid in full on allotment in respect of 4,000 shares each)38,0002. Allotment of two shares for every three shares applied for 1,60,0003. Allotment for one share for every four shares applied for 2,000

Cash amounting to Rs. 77,500 (being application money received with applications on 31,000 shares upon which no allotments were made) was returned to applicants on May 6, 2002.

The amounts called from the allottees were received on the due dates with the exception of the final call on 100 shares. These shares were forfeited on November 15, 2002 and reissued to A on November 16 for payment of Rs. 9 per share.

Record journal entries other than those relating to cash, in the books of O Limited, and also show how the transactions would appear in the balance sheet, assuming that the Company paid interest due from it on October 31, 2002

There seems to be some error in the question posted as the number of shares allotted and applied are not coming to be equal to total number of share given in the question. Please recheck your question and get back to us with the correct question so that we can provide you with a meaningful help.

Number of Shares Applied For

Number of Shares Allotted

38,000

1,60,000

2,000

31,000

38,000

1,06,667

500

Nil

2,31,000

1,45,167

 

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