Question 15

Al-walan Ltd. issued 20,000 shares of $ 50 each at a premium of $ 5 per share, payable as:

On application $ 10 per share

On allotment $ 25 (including $ 5 premium) per share

On first call $ 10 per share

On final call $ 10 per share

Applications were received for 25,000 shares and allotment was made to 20,000. Applications for 5000 shares were rejected all together and application money was returned. Sultan, to whom 1,000 shares were allotted, failed to pay the calls.

The journal entries of application are.

A.

Particulares	Dr	Cr	Particulares	Dr	Cr
Bank A/c Share Application A/c	250,000	250,000	Share Application A/c Share Capital A/c Bank A/c	250,000	200,000 50,000

B.

Particulares	Dr	Cr	Particulares	Dr	Cr
Bank A/c Share Application A/c	250,000	250,000	Share Application A/c Share Capital A/	250,000	250,000

C.

Particulares	Dr	Cr	Particulares	Dr	Cr
Share Capital A/c Bank A/c	250,000	250,000	Application A/c Share Capital A/	250,000	250,000

D.

Particulares	Dr	Cr	Particulares	Dr	Cr
Bank A/c Share Capital A/c Bank	250,000	200,000 50000	Share Application A/c Share Capital A/c	250,000	250,000