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


On Allotment


On First and Final Call


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.