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Question 12 Chapter 8 of +2-Part-1
12. (Premium in Application/Allotment) X Ltd. issued 10,000 shares of 10 each at a premium of Rs. 2 per share, payable as Rs. 2 per share on the application; Rs. 6 (including premium Re. 1) per share on allotment and Rs. 4 (including premium Re. 1) per share on final call. The issue was over-subscribed to the extent of 15,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and excess application money was adjusted towards allotment and call and Applicants for 4,000 shares were sent letters of regret and application money was returned. All the money was due on the allotment and the final call was received. Journalise the transactions.
We are providing a solution of Question 12 Chapter 8 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:
Analysis Table
| Shares Applied | Shares Allotted |
App. Money Received |
App. Money adjusted towards Capital & Premium | Surplus | Allotment Money Due | Surplus adjusted towards allotment | Surplus | 1st Call Money due | Surplus adjusted towards 1st call | Surplus | Refund |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | (3) = (1) X Rs.2 |
(4)= (2) X Rs.6 |
(5)= (3) - (4) |
(6)= (2) X Rs6 |
7 | (8)= (5) – (7) |
(9)= (2) X Rs. 4 |
10 | (11)= (8)-(10) |
12 |
| 4,000 | 8000 | 8,000 | 8,000 | 8,000 | 8,000 | ||||||
| 12,000 | 1,000 | 24,000 | 2,000 | 22,000 | 6,000 | 6,000 | 16,000 | 4,000 | 4,000 | 12,000 | 12,000 |
| 9,000 | 9,000 | 18,000 | 18,000 | 54,000 | 36,000 | ||||||
| 25,000 | 10,000 | 50,000 | 20,000 | 30,000 | 60,000 | 6,000 | 20,000 | 40,000 | 4,000 | 20,000 | 20,000 |
Journal
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| a) | Bank A/c (25,000X2) | Dr. | 50,000 | ||
| To Share Application A/c | 50,000 | ||||
| (Being application money received on 25,000 share shares @ Rs. 2 per share) | |||||
| b) | Share Application A/c (25,000X2) | Dr. | 50,000 | ||
| To Share capital A/c | 20,000 | ||||
| To Share Allotment A/c | 6,000 | ||||
| To Calls in Advance A/c | 4,000 | ||||
| To Bank A/c | 20,000 | ||||
| (Being the transfer of share allotment A/c For 1,0000 shares @ Rs. 6 per share; to calls in advance for 1,000 shares @ Rs. 4 per share & Rs. 20,000 refunded to applicants ) | |||||
| c) | Share Allotment A/c | Dr. | 60,000 | ||
| To Share capital A/c | 50,000 | ||||
| To Securities Premium A/c | 10,000 | ||||
| (Being allotment due on 70,000 shares @ 65 per share including Rs, 20 per share ) | |||||
| d) | Bank A/c (60,000-6,000) | Dr. | 54,000 | ||
| To Share Allotment A/c | 54,000 | ||||
| (Being money received on allotment of 10,000 share @ Rs. 6 as per shares less Rs. 6,000 of 1,000 share receivable along with app.) | |||||
| e) | Share Allotment A/c (10,000X4) | Dr. | 40,000 | ||
| To Share capital A/c | 30,000 | ||||
| To Security Premium reserve A/c | 10,000 | ||||
| (Being final call money due on 10,000 share @ 4 as per shares including premium Re. 1 per share ) | |||||
| f) | Bank A/c (9,000X4) | Dr. | 36,000 | ||
| Calls in advance A/c (1,000X4) | Dr. | 4,000 | |||
| To Share final Call A/c (1,000X1) | 40,000 | ||||
| (Being final call money received & balance transferred to calls – in advance A/c ) | |||||
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 12 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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25 May 2023
26 May 2023
