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Reebok Ltd invited application for 40000 equity share of Rs. 10 each payable at under. Rs. 3 on Application, Rs. 2 an Allotment, Rs. 3 on First call, Rs. 2 on Final Call. Public applied for 50000 shares. All the applications were accepted by the company. Company rejected applications for 4000 shares and their money was refunded. Money on excess application was used for allotment purpose. All the money dur on calls were received. Pass the journal entries in the books of the company.?
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Reebok Ltd invited application for 40000 equity share of Rs. 10 each p...
Journal Entries in the Books of the Company:

1. Application Stage:
- Dr. Bank Account (50000 shares * Rs. 3) 150000
Cr. Share Application Account (50000 shares * Rs. 3) 150000

2. Allotment Stage:
- Dr. Share Application Account (4000 shares * Rs. 3) 12000
Cr. Bank Account (4000 shares * Rs. 3) 12000

- Dr. Share Allotment Account (46000 shares * Rs. 2) 92000
Cr. Share Application Account (46000 shares * Rs. 2) 92000

3. First Call Stage:
- Dr. Share First Call Account (46000 shares * Rs. 3) 138000
Cr. Bank Account (46000 shares * Rs. 3) 138000

4. Final Call Stage:
- Dr. Share Final Call Account (46000 shares * Rs. 2) 92000
Cr. Bank Account (46000 shares * Rs. 2) 92000

5. Refund of Rejected Applications:
- Dr. Share Application Account (4000 shares * Rs. 3) 12000
Cr. Bank Account (4000 shares * Rs. 3) 12000

Explanation:

1. Application Stage:
- The company invited applications for 40000 equity shares of Rs. 10 each at a price of Rs. 3 per share.
- The total amount received from the public for 50000 shares is Rs. 150000.
- The entry records the receipt of money from the applicants.

2. Allotment Stage:
- The company rejected applications for 4000 shares and refunded the money.
- The remaining 46000 shares were allotted.
- The money received from excess applications (50000 - 40000 = 10000 shares) is utilized for allotment.
- The entry records the refund of rejected applications and the allotment of shares.

3. First Call Stage:
- The first call of Rs. 3 per share is made on the allotted shares.
- The entire amount is received from the shareholders.
- The entry records the receipt of money on the first call.

4. Final Call Stage:
- The final call of Rs. 2 per share is made on the allotted shares.
- The entire amount is received from the shareholders.
- The entry records the receipt of money on the final call.

5. Refund of Rejected Applications:
- The company refunds the money received for rejected applications.
- The entry records the refund of money to the applicants.
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Reebok Ltd invited application for 40000 equity share of Rs. 10 each payable at under. Rs. 3 on Application, Rs. 2 an Allotment, Rs. 3 on First call, Rs. 2 on Final Call. Public applied for 50000 shares. All the applications were accepted by the company. Company rejected applications for 4000 shares and their money was refunded. Money on excess application was used for allotment purpose. All the money dur on calls were received. Pass the journal entries in the books of the company.?
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Reebok Ltd invited application for 40000 equity share of Rs. 10 each payable at under. Rs. 3 on Application, Rs. 2 an Allotment, Rs. 3 on First call, Rs. 2 on Final Call. Public applied for 50000 shares. All the applications were accepted by the company. Company rejected applications for 4000 shares and their money was refunded. Money on excess application was used for allotment purpose. All the money dur on calls were received. Pass the journal entries in the books of the company.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Reebok Ltd invited application for 40000 equity share of Rs. 10 each payable at under. Rs. 3 on Application, Rs. 2 an Allotment, Rs. 3 on First call, Rs. 2 on Final Call. Public applied for 50000 shares. All the applications were accepted by the company. Company rejected applications for 4000 shares and their money was refunded. Money on excess application was used for allotment purpose. All the money dur on calls were received. Pass the journal entries in the books of the company.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Reebok Ltd invited application for 40000 equity share of Rs. 10 each payable at under. Rs. 3 on Application, Rs. 2 an Allotment, Rs. 3 on First call, Rs. 2 on Final Call. Public applied for 50000 shares. All the applications were accepted by the company. Company rejected applications for 4000 shares and their money was refunded. Money on excess application was used for allotment purpose. All the money dur on calls were received. Pass the journal entries in the books of the company.?.
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