Application was invited by GoBig Ltd. for 15000 of its ordinary shares at Rs. 115 per
share payable as follows: (12)
On application (including premium of Rs. 15 per share) Rs. 75; On allotment Rs. 20 per share and
On first & final call Rs. 20 per share.
Applications were received for 18000 shares and it was decided to deal with as follows:
a) To refuse allotment on applicants for 800 shares.
b) To give full allotment to applicants for 2200 shares.
c) To allot the remainder of the available shares on pro rata basis among the other applicants.
d) To utilize the surplus received on applications in part payment of amounts due on allotment.
An applicant to whom 400 shares had been allotted, failed to pay the amount due on the first and final call and his shares were declared forfeited. these shares were reissued later as fully paid at Rs. 90 per share. Pass journal entries including cash items.
Q. 6 (a)Under what circumstances may a company issue Rede