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

Question 20 Chapter 8 of +2- Part

Question 20 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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 as 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 Bank A/c       75,000
  (Being application money transferred to Share cap. A/c & excess amount refunded 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 )        
         

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 20 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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