Question

X Ltd. invited applications for 10,000 Equity Shares of Rs.10 each issued at par. The whole amount was payable on application. The issue was oversubscribed by 2,000 shares and allotment was made on pro rata basis. Pass necessary Journal entries.

Answer 1

Issued Capital 10,000 shares of Rs.10 each

Applied 12,00 shares 

Over - subscribed by 2,000 share