PetromaxLtd., issued 50,000 shares of Rs.10 each at a premium of Rs.2 per share payable as Rs.8 on application,Rs.5 including premium on allotment and the balance in equal installment over two calls applications were received for 92,000 shares and the allotment was done as under :
A. Applications of 40,000 shares allotted 30,000 shares
B. Applicants of 40,000 shares allotted 20,000 shares
C. Applicants of 12,000 shares nil
Suresh who had applied for 2,000 shares (category A) did not pay any money other than application money. Chandar who allotted 800 shares (category B) paid the call money due along with allotment. All other allottees paid their dues as per schedule.
Pass necessary journal entries in the books of Petromax Ltd. to record the above transactions.
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