Question

Sony Media Ltd. issued 50,000 share of Rs.10 each payable Rs.3 on application, Rs.3 on allotment and balance on first and final call. Applications were received for 1, 00,000 shares and allotment was made as follow: 1. Applicants for 60,000 shares were allotted 30,000 shares. 2. Applicants for 40,000 shares were allotted 20,000 shares. 

Anupam, to whom 1,000 shares were allotted from category (I), failed to pay the allotment money. Pass Journal entries up to allotment.

Answer 1

Note: No amount shall be received on allotment since all of the due amount is already adjusted from the excess money received at the time of application.

Working Notes:

Comments

Answer was wrong

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No.....because the second and third journal entries both balance the share allotment account and also according to the calculations....... there is no need for payment of allotment money as all the application money makes up for it..