Question

X Ltd. invited application for 10,000 Equity Shares of Rs. 10 each issued at per The 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 ( Rs. 10 each) = 10,000 shares

Applied = 12,000 Shares

Over -Subscribed = 2,000 shares