Question 20 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part

Question 20 Chapter 8 of +2-Part-1

Table of Contents

The solution of Question 20 Chapter 8 of +2 Part-1: –

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

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

20. (Oversubscription) Alkins company issued prospectus inviting applications for 22,000 shares of Rs. 100 Applications were received for 25,000 shares. Amount is payable: Rs. 25 on application ; Rs. 45 on allotment and balance on call money.
Pass journal entries:
(i) When application for 3,000 shares are rejected and excess money is refunded.
(ii) When surplus application money is utilized towards allotment

The solution of Question 20 Chapter 8 of +2 Part-1: –

Journal
Date	Particulars		L.F.	Debit	Credit
(Case i)a)	Bank A/c (25,000X25)	Dr.		6,25,000
	To Share Application A/c				6,25,000
	(Being application money received on)

b)	Share Application A/c	Dr.		6,25,000
	To Share capital A/c				5,50,000
	To Bank A/c (3,000X25)				75,000
	(Being application money transferred to Share cap. A/c & excess amount refunded )

c)	Share Allotment A/c (22,000X45)	Dr.		9,90,000
	To Share capital A/c				9,90,000
	(Being allotment money due on 22,000 share @ Rs. 45 per shares)

d)	Bank A/c	Dr.		9,90,000
	To Share allotment A/c				9,90,000
	(Being allotment money received in full)

e)	Share first & final Call A/c	Dr.		6,60,000
	To Share capital A/c				6,60,000
	(Being final call money due on 22,000 share @ 30 as per shares)

(Case ii)a)	Entry No. (a) (c) (e) (f) same as above

b)	Share Application A/c	Dr.		6,25,000
	To Share capital A/c (22,000X25)				5,50,000
	To Share Allotement A/c				75,000
	(Being application money transferred to Share cap. A/c & excess amount adjusted towards allotment )

d)	Bank A/c (9,90,000-75,000)	Dr.		9,15,000
	To Share allotment A/c				9,15,000
	(Being allotment money received in full on allotment )