Question

(Over subscription- Some over application refunded and rest used for allotment)
ONGC Ltd. invited applications for 25,000 shares of Rs 100 each payable as under-

On Application	Rs 20	On Allotment	Rs 40
On First Call	Rs 25,	On Final Call	Rs 15

Public applied for 40,000 shares, out of which 10,000 shares were rejected and money on 5,000 shares was diverted to share allotment. All the allotment and calls money was received.
Pass journal entries in the journal of ONGC Ltd.

Answer 1

Computation Table

Categories	Shares  Applied	Shares Alloted	Money received on Application @ Rs 20 each	Money transfers to Share Capital @ Rs 20 each	Excess Application money adjusted on Share Allotment	Allotment due @ Rs 40 each	Refunded
I	10,000	Nil	200,000	-	-	-	200,000
II	30,000	25,000	600,000	500,000	100,000	10,00,000	-
	40,000	25,000	800,000	500,000	100,000	10,00,000	200,000

                                             Books of ONGC Ltd.
                                                 Journal Entry

Date	Particulars	L.F.	Debit Amount (Rs.)	Credit Amount (Rs.)
	Bank A/c                              Dr.      To Share Application A/c (Share application received on 40,000 shares of Rs 20 each)		800,000	800,000
	Share Application A/c          Dr.    To Share Capital A/c    To Share Allotment A/c    To Bank A/c (Share application transferred to Share Capital and excess application money received on 5,000 shares adjusted on share allotment and application received on 10,000 shares refunded)		800,000	500,000 100,000 200,000
	Share Allotment A/c         Dr     To Share Capital A/c (Share allotment due on 25,000 shares of Rs 40 each)		10,00,000	10,00,000
	Bank A/c                          Dr.    To Share Allotment A/c (Share Allotment received)		900,000	900,000
	Share First Call A/c          Dr.       To Share Capital A/c (Share first call due on 25,000 shares of Rs 25 each)		625,000	625,000
	Bank A/c                          Dr.   To Share First Call A/c (Share first call received)		625,000	625,000
	Share Final Call A/c          Dr.       To Share Capital A/c (Share final call due on 25,000 shares of Rs 15 each)		375,000	375,000
	Bank A/c                           Dr    To Share Final Call A/C (Share final call received)		375,000	375,000

Working Notes:
Money received on Application (40,000×3)    =     800,000
Less: Application money transferred
to Share Capital 25,000×20                             =    500,000 
Less: Application money
Refunded 10,000×20                                      =     200,000     
Excess money on application                         =     100,000     

Allotment due on 25,000 Shares × Rs 40      =     10,00,0000
Less: Adjustment of excess money  
on application                                               =     1,00,000       
Share Allotment Received                            =       900,000