model comprehensive mdash allotment of shares lsquo a rsquo ltd invited applications 615745

Model: Comprehensive—Allotment of shares ‘A’ Ltd. invited applications for 50,000 shares of 10 as follows:

On Application	3
On Allotment	2
On First and Final Call	5

Applications were received for 1,00,000 shares. It was decided

1. To refuse allotment to the applicants for 10,000 shares
2. To allot 50% to Mr. P. who has applied for 20,000 shares
3. To allot in full to Mr. Q. who has applied for 10,000 shares
4. To allot balance of the available shares pro-rata among the other applicants
5. To utilize excess application money in part payment of allotment and final call

Pass necessary journal entries in the books of ‘A’ Ltd.