B1

Fatma LLC called an application for equity shares of 200,000, which are amounting to OMR 50 per share. They were payable as follows:

Application	OMR 10
Allotment	OMR 15
First call	OMR 15
Second call and final call	OMR 10

On February 02, 2019, the company-received applications for 800,000 shares and the allotment on shares were made on March 01, 2019.

You are required to analyses the given situations and provide necessary journal entries for scenario 1 and 2.

1. Scenario 1: The board of directors made some important decisions regarding the allotment of shares to the applicants. They allotted 200,000 shares to some selected applicants in full. But they rejected the applications on the remaining number of shares. (5 marks)

2. Scenario 2: The board of directors decided that no any applicant should be made upset with regard to the application of shares, so that they allotted to all the applicants 25% of their applied number of shares. The balance amount is due on allotment and the amount remaining thereafter is refunded. (5 marks)