Forfeiture of Shares Allotted Under Pro-rata Category

\[\frac{\text{Total Shares Applied under Pro rata Category}}{\text{Total Shares Allotted under Pro rata Category}}\times\text{No. of Shares Allotted to Shareholder}\]

Application Money Received = Number of Shares Applied × Application Money Per Share

Excess Application Money = Application Money Received - Application Money Due on Shares Allotted.

1. On Receipt of Application Money:

Bank A/c            ...Dr.

       To Shares Application and Allotment A/c

(Being application money received and credited to joint account)

2. On Appropriation of Application Money and Allotment Recording (Combined Entry):

Shares Application and Allotment A/c          ...Dr.

      To Share Capital A/c

      To Calls-in-Advance A/c

      To Bank A/c

(Being appropriation of application and allotment money, adjustment, and refund recorded)