ST Ltd. issued 100,00 ordinary shares of sh. 10 each payable as follows:

Application Sh. 4

Allotment Sh. 4

First & final call Sh. 2

Total Sh. 10

Applications were received for 120,000 shares. The excess applications were dealt with as follows:

1.8,000 were rejected and money refunded.

ii. The balance was allotted on proportionate basis and excess application money dealt with in allotment.

Required: 

Pass the necessary journal entries

Answer rating: 100% (QA)

Account Title Debit Credit 1To record receipt of applic... View the full answer