the journal entries with regard to allotment of shares are as
follows-
for transfer of aplication money
share application a/c dr...
To share capital a/c
(aplication money on --share allotted transferred to share
capital)
for money refunded on rejected application
share application a/c dr.
To bank a/c
(application money returned on rejected application for --
shares)
for amount due to allotment
share allotment a/c dr.
To share capital a/c
for adjustment of excess application money
share application a/c
To share allotment a/c
(allotment money on- shares @rs-per shares adjusted to the
amount due on allotment)
for receipt of allotment money
bank a/c dr.
To share allotment a/c
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