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in Company Accounts - Issue of Shares and Debentures by (63.4k points)

Madhav Ltd. issued Rs 60,000 shares of Rs 10 each to the public, which were payable as follows :
On application Rs 2 (payable on 1st April, 2017), on allotment Rs 3 (payable on 1st June, 2017), on first call Rs 2.5 (payable on 1st September, 2017) and on second and final call Rs 2.5 (payable on 1st February, 2018). Applications were received for 1,00,000 shares and allotment was made as under. To application for 5,000 shares-full; to applicants for 45,000 shares-10,000 shares and to applicants for 5,000 shares nil. Excess money received on application was utilized towards allotment and subsequent calls. Interest on call-in-advance was paid as per Table F. Give journal entries to record the above transactions, assuming all amount due were received in time.

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by (63.7k points)
edited by

Working Notes:

Calculation of interst on advance call:

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