Advertisement
Question 23 Chapter 8 of +2-Part-1
Advertisement
23. (Oversubscription/ Prorata Allotment) Voltas Ltd. has issued prospectus inviting applications for 43,000 shares of Rs. 20 each payable Rs. 8 on application : Rs. 7 on allotment and Rs. 5 on final call. Applications for 83,000 shares were received. Due to over subscription the allotment was made as follows :
| Category | Shares applied | Shares allotted |
| 1 | 8,000 | 8,000 |
| 2 | 12,000 | 9,000 |
| 3 | 18,000 | 11,000 |
| 4 | 45,000 | 15,000 |
| 83,000 | 43,000 |
You are required to prepare a statement treatment under the following:
- When application money received in excess is not retained.
- When application money received in excess is retained for allotment.
- When application money received in excess is retained for allotment and call.
The solution of Question 23 Chapter 8 of +2 Part-1: –
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| A) | Bank A/c | Dr. | 6,64,000 | ||
| To Share Application A/c | 6,64,000 | ||||
| (Being application money received on 83,000 share shares @ Rs. 8 per share) | |||||
| For case (a) (check WN-1) | |||||
| B) | Share Application A/c | Dr. | 6,64,000 | ||
| To Share capital A/c | 3,44,000 | ||||
| To Bank A/c | 3,20,000 | ||||
| (Being the application money transferred to share capital A/c & excess refunded ) | |||||
| For case (b) (check WN-2) | |||||
| B) | Share Application A/c | Dr. | 6,64,000 | ||
| To Share capital A/c | 3,44,000 | ||||
| To Share Allotment A/c | 1,85,000 | ||||
| To Bank A/c | 1,35,000 | ||||
| (Being application money adjusted as per board resolution ) | |||||
| For case (c) (check WN-3) | |||||
| B) | Share Application A/c | Dr. | 6,64,000 | ||
| To Share capital A/c | 3,44,000 | ||||
| To Share Allotment A/c | 1,85,000 | ||||
| To Calls in advance A/c | 75,000 | ||||
| To Bank A/c | 60,000 | ||||
| (Being application money adjusted as per board resolution ) | |||||
Working notes of Question 23 Chapter 8 of +2-Part-1:
WN-1 – When application money received in excess is not retained.
| Categories | Shares Applied | Shares Allotted | App. Money Received | App. Due | Balance | Refund |
| Rs. | Rs. | Rs. | Rs. | |||
| 1 | 8,000 | 8,000 | 64,000 | 64,000 | – | – |
| 2 | 12,000 | 9,000 | 96,000 | 72,000 | 24,000 | 24,000 |
| 3 | 18,000 | 11,000 | 1,44,000 | 88,000 | 56,000 | 56,000 |
| 4 | 45,000 | 15,000 | 3,60,000 | 1,20,000 | 2,40,000 | 2,40,000 |
| Total | 83,000 | 43,000 | 6,64,000 | 3,44,000 | 3,20,000 | 3,20,000 |
WN-2 – When application money received in excess is retained for allotment.
| Categories | Shares Applied | Shares Allotted | App. Money Received | App. Due | Balance | Allotment Money Adjusted | Refund |
| Rs. | Rs. | Rs. | Rs. | Rs. | |||
| 1 | 8,000 | 8,000 | 64,000 | 64,000 | – | – | |
| 2 | 12,000 | 9,000 | 96,000 | 72,000 | 24,000 | 24,000 | – |
| 3 | 18,000 | 11,000 | 1,44,000 | 88,000 | 56,000 | 56,000 | – |
| 4 | 45,000 | 15,000 | 3,60,000 | 1,20,000 | 2,40,000 | 1,05,000 | 1,35,000 |
| Total | 83,000 | 43,000 | 6,64,000 | 3,44,000 | 3,20,000 | 1,85,000 | 1,35,000 |
WN-3 – When application money received in excess is retained for allotment and call.
| Categories | Shares Applied | Shares Allotted | App. Money Received | App. Due | Balance | Allotment Money Adjusted | Call Adjustments | Refund |
| Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | |||
| 1 | 8,000 | 8,000 | 64,000 | 64,000 | – | – | ||
| 2 | 12,000 | 9,000 | 96,000 | 72,000 | 24,000 | 24,000 | – | |
| 3 | 18,000 | 11,000 | 1,44,000 | 88,000 | 56,000 | 56,000 | – | |
| 4 | 45,000 | 15,000 | 3,60,000 | 1,20,000 | 2,40,000 | 1,05,000 | 75,000 | 60,000 |
| Total | 83,000 | 43,000 | 6,64,000 | 3,44,000 | 3,20,000 | 1,85,000 | 75,000 | 60,000 |
It all about Question 23 Chapter 8 of +2-Part-1, If you have any problem please comment below.
End of Solution
Advertisement-X
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 8 – Company Accounts (Share Capital) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Question 36 Chapter 8 of +2-Part-1 – USHA Publication
Advertisement-X
Thanks for completing the chapter. If you understand the question or we have helped you with your homework, please share our website on your social media. We are delighted to help you out.
Thanks again.
Advertisement-X
End of Post
Download a PDF of Chapter No. 8 – Company Accounts (Share Capital):
If you want to download a PDF of this chapter then you can do it. Check out our PDF file on our Store page.
Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Advertisement-X
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Accounting Ratios
Chapter No. 15 – Cash Flow Statement
Advertisement-X
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out Part 1 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication