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

Question 22 Chapter 8 of +2- Part

Question 22 Chapter 8 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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
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)        
         

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 22 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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