SORULAR (QUESTIONS) 1. ABC Ltd. issued a prospectus for inviting application from the public for 10,000 equity shares of $ 10 each. The amounts were payable as follows: $3 on Application, $2 on...

Extracted text: SORULAR (QUESTIONS) 1. ABC Ltd. issued a prospectus for inviting application from the public for 10,000 equity shares of $ 10 each. The amounts were payable as follows: $3 on Application, $2 on Allotment & the balance as and when called. Applications were received for 12,000 shares & the allotment was made as follows: • Full applications for 8,000 shares • 2,000 shares shares to remaining applicants and the excess application money is to be adjusted towards allotment. • totally reject applications for 2,000 shares Pass Journal entries in the books of the company assuming that all allotment money was received and the call was not made.