Class 12 Accountancy Notes · GSEB
Pro-rata Allotment
Pro-rata Allotment — Master the over-subscription allocation table and build pro-rata journals live with the per-share method. GSEB Class 12 Commerce Accountancy notes with worked sums.
Last updated: 29 Sep 2026
Notes
Concept and the Excess-Money Chain
Category 1 — full allotment
Transfer = allotted shares × application rate
Applied equals allotted — no excess, no refund
Category 2 — rejected
Refund = applied shares × application rate
Not a single share allotted
Category 3 — pro-rata
Excess = (applied − allotted) × rate → allotment → calls → refund
The working-table chain
Any sum may mix all three categories
Illustration 15: full allotment to 32,000 applicants, none to 24,000, and pro-rata 48,000 to 64,000 applicants. A campus canteen doing exactly this — honouring early bird bookings in full, turning away walk-ins after the cut-off, and splitting the remaining trays between late-comers — is running the same three categories.
Golden sequencing for the transfer entry (entry 2)
Dr Share application (total received)→ To Share capital (allotted × capital portion)→ To Share allotment (excess adjusted)→ To Share call (further excess, if any)→ To Bank (rejected refund + final surplus)
The Working Table (Taught Walkthrough — Illustration 15)
Illustration 15 — Bharti Food Products Ltd. 80,000 shares of ₹ 10; ₹ 4 application, ₹ 3 allotment, ₹ 3 final call; applications 1,20,000 — full to 32,000 applicants, none to 24,000, 48,000 allotted to 64,000 applicants.
| Applicants | Amount on application (₹) | Allotted | To Share application/capital (₹) | To Share allotment (₹) | To Share final call (₹) | Refunded (₹) |
|---|---|---|---|---|---|---|
| 32,000 | 1,28,000 | 32,000 | 1,28,000 | – | – | – |
| 24,000 | 96,000 | – | – | – | – | 96,000 |
| 64,000 | 2,56,000 | 48,000 | 1,92,000 | 64,000 | – | – |
| Total | 4,80,000 | 80,000 | 3,20,000 | 64,000 | – | 96,000 |
| # | Particulars | Amount (₹) |
|---|---|---|
| 1 | Bank A/c Dr 4,80,000 To Equity share application A/c 4,80,000 (1,20,000 × ₹ 4) | 4,80,000 |
| 2 | Equity share application A/c Dr 4,80,000 To Share capital A/c 3,20,000 (80,000 × ₹ 4) To Share allotment A/c 64,000 (16,000 × ₹ 4) To Bank A/c 96,000 (24,000 × ₹ 4) | 4,80,000 |
| 3 | Share allotment A/c Dr 2,40,000 To Share capital A/c 2,40,000 (80,000 × ₹ 3) | 2,40,000 |
| 4 | Bank A/c Dr 1,76,000 To Share allotment A/c 1,76,000 (2,40,000 due − 64,000 advance) | 1,76,000 |
| 5 | Share final call A/c Dr 2,40,000 To Share capital A/c 2,40,000 (80,000 × ₹ 3) | 2,40,000 |
| 6 | Bank A/c Dr 2,40,000 To Share final call A/c 2,40,000 | 2,40,000 |
Pro-rata never changes the CAPITAL line
To Share capital = allotted × ₹ application capital. Excess only changes which stage account receives the money — never the capital figure.
When the excess is bigger than allotment
The excess sits in Share allotment as a debit-balance advance, so the receipt entry shows only the balance. The same chain goes one step deeper when the excess exceeds allotment due — Illustration 17 pushes the surplus into the call stage.
Interactive Journal Lab — Pro-rata
Enter the categories and rates — the page builds the working table, the flow ribbon and the full journal, every line as shares × ₹ per share. Add a defaulter to get the per-share build-up that feeds the Forfeiture Lab.
Journal Lab: Pro-rata — working table → staged journal
Work through the steps in order — table first, then every entry.
Worked Board Sums
Type — Pro-rata: Board Sums
8 problemsCategory-based allocation (like Illustration 15)
Bharti Food Products: 80,000 shares — 32,000 applicants full, 24,000 none, 48,000 allotted to 64,000 applicants; ₹ 4 application, ₹ 3 allotment, ₹ 3 final call.Working table above · 6 entries — 4,80,000 / 3,20,000 / 64,000 / 96,000
This is the Lab default.
Sheetal Electronics: 1,20,000 shares at ₹ 10 — ₹ 3 application, ₹ 3 allotment, ₹ 4 final call. Applications 1,80,000: full to 48,000, none to 36,000, 72,000 to 96,000 applicants. All amounts received.Same three-category shape as Illustration 15 — run it through the Lab.
Uniform pro-rata (all remaining applicants)
Bhadresh Diamond: 3,00,000 shares — ₹ 3 application, ₹ 2.50 allotment, ₹ 2.50 first call, ₹ 2 final call. Applications 4,56,000: pro-rata 3,00,000 to 4,50,000 applicants, 6,000 rejected. Daxa (600 allotted) unpaid final call → forfeited → reissued at ₹ 9.Transfer: To capital 9,00,000, To allotment 4,50,000, To Bank 18,000 · forfeiture 6,000 / 4,800 / 1,200 → reissue → CR 4,200
Lab preset. The defaulter build-up gives ₹ 2 unpaid on the final call — feed it to the Forfeiture Lab.
Gujarat Fertilizers: 4,50,000 shares — ₹ 3, ₹ 3, ₹ 2, ₹ 2 across four stages. Applications 6,20,000; pro-rata 4,50,000 to 5,40,000 applicants, the rest refunded. Mahesh (1,000 allotted) unpaid final call → forfeited → reissued at ₹ 5.Same shape as Illus 16 with a refund category added.
Panchvilla Mfg.: 7,50,000 shares at 20% premium — ₹ 5 application, ₹ 4 allotment (including premium), ₹ 3 final call. Applications 11,25,000; 75,000 rejected; pro-rata to the rest with excess adjusted to allotment. Vishal (7,500 allotted) unpaid final call → forfeited → reissued at a 10% discount.Put the premium in the allotment column so the violet line appears in the due entry.
Ahmedabad Chemical: 1,50,000 shares of ₹ 100 at premium ₹ 30 — application and allotment ₹ 85 (including premium), first and final call = balance. Applications 2,55,000; 55,000 rejected; pro-rata to the rest; excess credited to the first and final call.A two-stage sum (combined application + allotment) with excess pushed into the call — the deepest chain variant.
Fraction-based rejection (2/5, 4/7 type)
Nupur Ltd: 5,00,000 shares of ₹ 10 at 100% premium — ₹ 5 application, ₹ 2 + premium allotment, ₹ 3 first and final call. Applications 12,50,000 (2.5×); 2/5th rejected fully; pro-rata to the rest; excess to allotment then calls.Received 62,50,000 (12,50,000 × ₹ 5); transfer: capital 25,00,000, allotment advance 12,50,000, refund 25,00,000; allotment due 60,00,000 → received 47,50,000; call 15,00,000 → 15,00,000. Total 2,62,50,000.
Convert the fraction to a category first: 2/5 of 12,50,000 = 5,00,000 rejected.
Sharda Ltd: 6,00,000 shares of ₹ 10 at premium ₹ 4 — ₹ 4 application, ₹ 3 + premium allotment, ₹ 3 first and final call. Subscription 3.5 times; 4/7th of applications rejected; pro-rata to the rest; excess application money credited to share allotment AND share calls.Same fraction shape as Illustration 17, but the excess spills into calls too.
Key Takeaways
Key Takeaways
- Pro-rata = allot in proportion on over-subscription; excess application money flows application → allotment → calls → refund.
- The working table (applied / allotted / capital / allotment / call / refund) is the marking scheme — build it before writing any entry.
- To Share capital is untouched by pro-rata: always allotted × the application capital portion.
- Excess already adjusted means the receipt entry shows only the balance due.
- A pro-rata defaulter’s amount received per share includes the application excess — build it per-share before writing the forfeiture entry (bridges to the Forfeiture Lab).
- Fraction rejections (2/5 of applications, 3.5× subscription) are just category counts computed first.