Scenario 1

June 1

The directors issued a prospectus offering 40,000 ordinary shares at an issue price of $2.80, payable $2 on application and 80c as a future call. The closing date for application was 31 September. The share issue was underwritten for a fee of $2,500, payable on 15 October.

September 31

Applications for 50,000 shares had been received.

October 10

The directors allotted the shares pro rata, with applicants receiving 80% of their requested shares. The companys constitution allows excess application monies to be retained and used to offset future calls payable.

These are the jounral entries I have got, the only one i'm troubled with is the oct 10th entry about the pro rata distribution of 80% of the shares, how would I record that entry and what figures am I looking at to get the 80%

31 sept	Bank Trust	100,000
	ApplicAtion		100,000

(app money received)

10 oct	Application	80,000
	allotment	32,000
	share capital		112,000

(issue of shares on app and allot)

10 oct	application	20,000
	allotment		20,000

(transfer of excess app to allot)

10 oct	cash at bank	100,000
	bank trust		100,000

(transfer of funds to gen reserve)