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

Q-12 - CH-8 - Usha +2 Book 2018 - Solution

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:

## The solution of Question 12 Chapter 8 of +2 Part-1: –

 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 Rs4 10 (11)=(8)-(10) 12 4,000 8000 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 22,000 60,000 6,000 16,000 40,000 4,000 12,000 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 )

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