Question 22 Chapter 8 of +2 Part-1 - USHA Publication 12 Class Part

Question 22 Chapter 8 of +2-Part-1

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The solution of Question 22 Chapter 8 of +2 Part-1: –

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

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

22. (Oversubscription/ Prorata Allotment) Pilot Lad issued 10,000 equity shares of Rs. 10each , payable Rs. 2 on application, Rs. 3 on allotment and balance on first and final call.
Applications were received for 12,000 shares and shares were allotted as under :
Applicants for 8,000 shares were allotted in full, those who applied for 3,000 shares were allotted 2,000 shares and applications for 1,000 shares were rejected. Whole of the money was called and received. Pass the necessary journal entries in the books of company.

The solution of Question 22 Chapter 8 of +2 Part-1: –

Category	Applied	Allotted
Full	8,000	8,000
Pro – Rate	3,000	2,000
Refund	1,000
	12,000	10,000

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Journal
Date	Particulars		L.F.	Debit	Credit
a)	Bank A/c (10,000X2)	Dr.		24,000
	To Equity Share Application A/c				24,000
	(Being receipt of application money received on 12,000 equity shares @ Rs. 2 per share )

b)	Share Application A/c	Dr.		24,000
	To Equity Share capital A/c				20,000
	To Equity Share allotment A/c				2,000
	To Bank A/c				2,000
	(Being 8,000 shares allotted & excess money refunded )

c)	Equity Share Allotment A/c	Dr.		30,000
	To Share capital A/c				30,000
	(Being allotment money due on 10,000 equity shares @ Rs. 3 per share )

d)	Bank A/c (30,000 – 2,000)	Dr.		28,000
	To Share allotment A/c				28,000
	(Being the receipt of the balance of the amount due on allotment )

e)	Share first & final Call A/c	Dr.		50,000
	To Equity Share capital A/c				50,000
	(Being first & final call money due on 10,000 equity share @ Rs. 5 per share )

f)	Bank A/c	Dr.		50,000
	To Equity Share first & final Call A/c				50,000
	(Being balance of first call money received in full)