Question

Sony Media Ltd.issued 50,000 shares of Rs. 10 each payable Rs.3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 1,00,000 shares and allotment was made as follows:

(i) Applicants for 60,000 shares were allotted 30,000 shares,

(ii) Applicants for 40,000 shares were allotted 20,000 shares, Anupam to whom 1,000 shares were allotted from category

(i) ** to pay the allotment money. Pass journal entries up to allotment.

Answer 1

Note: Full amount has already been adjusted from the excess money received at the time of application therefore, no amount shall be received on allotment.

Excess money received on application (1,000 x Rs.3) = Rs.3,000

Money due on allotment from anupam (1,000 x Rs.3) = Rs,3,000

Therefor anupam has already been paid the complete amount on application

Note: as per this Question correct allotment money is Rs,3.

While according to the book Question is allotment money is Rs.4.