Get the free Pro Rata Allotment: Journal Entries, Concept and Questions

4 On call Rs. 2 Applications were received for 24000 shares. Letter of regret were issued to the applicants of 4000 shares. The shares were allotted to all the other applicants. Mr. A, The holder

How to fill out pro rata allotment journal

How to fill out pro rata allotment journal

1. To fill out a pro rata allotment journal, follow these steps:
2. Begin by identifying the company's authorized share capital and the number of shares that have been issued.
3. Determine the total number of new shares to be allotted and the price at which they will be issued.
4. Calculate the proportion of shares each existing shareholder is entitled to receive. This can be done by dividing the number of shares each shareholder currently holds by the total number of issued shares.
5. Multiply the proportion of shares by the total number of new shares to determine the number of new shares each shareholder will receive.
6. Calculate the amount to be paid for each new share by multiplying the price of the new shares by the proportion of shares allotted to each shareholder.
7. Record the details of the allotment in the pro rata allotment journal. Include the shareholder's name, the number of new shares allotted, the amount to be paid for each share, and any other relevant information.
8. Update the company's records to reflect the allotment of new shares, including updating the share register and issuing share certificates to the shareholders.
9. Finally, ensure that all necessary legal and regulatory requirements are met, such as filing the appropriate documents with the relevant authorities.

Who needs pro rata allotment journal?

1. Pro rata allotment journal is needed by companies that are issuing new shares to existing shareholders.
2. This journal is used to record the allotment of new shares on a pro-rata basis, ensuring that each existing shareholder receives a fair and proportionate allocation of new shares.
3. It helps maintain transparency and accountability in the allotment process and ensures that all shareholders are treated equally.
4. The pro-rata allotment journal is particularly important in situations where the company has a large number of shareholders, as it helps manage and track the allocation of new shares accurately.

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What is pro rata allotment journal?

Pro rata allotment journal is a financial document that records the allocation of shares or securities based on a proportional basis.

Who is required to file pro rata allotment journal?

Companies or entities that issue shares or securities through pro rata allotment are required to file the pro rata allotment journal.

How to fill out pro rata allotment journal?

To fill out a pro rata allotment journal, one must include details such as the number of shares allocated, names of shareholders, percentage of allocation, and any relevant payment information.

What is the purpose of pro rata allotment journal?

The purpose of pro rata allotment journal is to maintain accurate records of the allocation of shares or securities in a fair and transparent manner.

What information must be reported on pro rata allotment journal?

The pro rata allotment journal must include details such as the company name, date of allotment, shareholder names, number of shares allocated, percentage of allocation, and any payment details.