Janta Papers Limited invited applications for 1,00,000 equity shares of Rs.25 each payable as under:
`{:("On Application",,Rs. 5.00 " per share"),("On Allotment",,Rs. 7.50 " per share"),("On First Call",,Rs. 7.50 " per share"),(("due two months after allotment"),,),("On Second and Final Call",,Rs. 5.00 " per share"),(("due two months after First Call"),,):}`
Applications were received for 4,00,000 shares on January 01, 2017 and allotment was made on February 01, 2017.
Record journal entries in the books of the company to record these share capital transactions under each of the following circumstances:
1 The directors decide to allot 1,00,000 shares in full to selected applicants and the applications for the remaining 3,00,000 shares were rejected outright.
2.The directors decide to make a pro-rata allotment of 25 per cent of the shares applied for to every applicant, to apply the balance of application money towards amount due on allotment, and to refund the amount remaining thereafter.
3. The directors totally reject applications for 2,00,000 shares, accept full application for 80,000 shares and make a pro-rata allotment of the 20,000 shares to remaining applicants and the excess application money is to be adjusted towards allotment and calls to be made.