Printkit Limited invited applications for issue of 80,000 equity shares of Rs. 10 each. The amount was payable as follows:

On Application – Rs. 3 per share

  On Allotment – Rs. 2 per share

  On First and Final call – Balance

Applications for 1,50,000 shares were received. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants on the following basis:

Category A – Applicants for 80,000 shares were  

allotted 40,000 shares.

Category B – Applicants for 60,000 shares were 

allotted 40,000 shares.

Excess money received on application was adjusted towards amount due on allotment and first and final call. All the amounts due on allotment and first and final call were duly received.

  Pass necessary journal entries in the books of Printkit Limited. 

Marks-6, CBSE: 2023-24/Zone-1/Set-1/Q-25*