Aloha Co. Ltd. Invited applications of its 20000 equity shares for AED 10 each. Each share at a premium of AED 2 per share, payable as AED 3 on application, AED 7 on allotment (including premium): and balance on first and final call

The company received applications for 25000 equity shares, and it was decided

1. To refuse allotment to applicant of 1000 shares
2. To allot in full to applicants of 4000 shares
3. To allot the balance of available shares on pro-rata basis
4. To utilize the excess application money in part payment of allotment money

Mr. Ahmed holding 200 shares to whom shares had been allotted on pro-rata basis failed to pay the amount due on allotment and call; Mr, Saeed holding 100 shares to whom full allotment was made failed to pay the amount due on call only. These shares were forfeited.

160 forfeited shares of Mr. Ahmad and 40 shares of Mr. Saeed were re-issued at a discount of AED 1 per share to Mr. Qayum. Show the journal entries of Aloha Co. Ltd

Answer rating: 100% (QA)

Applications Received Shares Alloted Application Money 3 Each Transfer to Share Capital Refund Adjus... View the full answer