Question 11 Chapter 8 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 11 Chapter 8 of +2- Part

Question 11 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

11. (Oversubscription) Punjab Spinning Mill offered 70,000 shares of 100 each at a premium of 20 per share to public payable as follows:
Rs. 35 on application
Rs. 65 on allotment (including premium) Rs. 20 on final call.
Applications for 70.000 shares were received. Prepare Journal.

The solution of Question 11 Chapter 8 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit
a) Bank A/c Dr.   24,50,000  
  To Share Application A/c       24,50,000
  (Being application money received on 70,000 shares @ 35 per share )        
           
b) Share Application A/c Dr.   24,50,000  
  To Share capital A/c       24,50,000
  (Being application money of 70,000 shares transferred to share cap. A/c)        
           
c) Share Allotment A/c Dr.   45,50,000  
  To Share capital A/c       31,50,000
  To Securities Premium A/c       14,00,000
  (Being allotment due on 70,000 shares @ 65 per share including Rs, 20 per share )        
           
d) Bank A/c Dr.   45,50,000  
  To Share Allotment A/c       45,50,000
  (Being allotment money received )        
           
e) Share Final Call A/c Dr.   14,00,000  
  To Share capital A/c       14,00,000
  (Being final call due on 70,000 shares @ 20 per share )        
           
f) Bank A/c Dr.   14,00,000  
  To Share Final Call A/c       14,00,000
  (Being final call received )        
         

Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 11 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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