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

Question 12 Chapter 8 of +2-Part-1

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

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

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.

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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 )