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Question 23 Chapter 8 of +2-Part-1 – USHA Publication 12 Class Part – 1

Question 23 Chapter 8 of +2-Part-1 - Solution
Question 23 Chapter 8 of +2-Part-1 - Solution

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Question 23 Chapter 8 of +2-Part-1

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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 
18,0008,000
212,0009,000
318,00011,000
445,00015,000
 83,00043,000

You are required to prepare a statement treatment under the following:

  1. When application money received in excess is not retained.
  2. When application money received in excess is retained for allotment.
  3. When application money received in excess is retained for allotment and call.

The solution of Question 23 Chapter 8 of +2 Part-1: –

Day 175 Solution of Questions 23 24 and 25 Share Capital Chapter 8 Accounts Part B class 12 PSEB

Journal
Date  Particulars
L.F.DebitCredit
A)Bank A/cDr. 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/cDr. 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/cDr. 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/cDr. 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 AppliedShares AllottedApp. Money ReceivedApp. DueBalanceRefund
   Rs.Rs.Rs.Rs.
18,0008,00064,00064,000
212,0009,00096,00072,00024,00024,000
318,00011,0001,44,00088,00056,00056,000
445,00015,0003,60,0001,20,0002,40,0002,40,000
Total83,00043,0006,64,0003,44,0003,20,0003,20,000

WN-2 – When application money received in excess is retained for allotment.

Categories Shares AppliedShares AllottedApp. Money ReceivedApp. DueBalanceAllotment Money Adjusted Refund
   Rs.Rs.Rs.Rs.Rs.
18,0008,00064,00064,000 
212,0009,00096,00072,00024,00024,000
318,00011,0001,44,00088,00056,00056,000
445,00015,0003,60,0001,20,0002,40,0001,05,0001,35,000
Total83,00043,0006,64,0003,44,0003,20,0001,85,0001,35,000

WN-3 – When application money received in excess is retained for allotment and call.

Categories Shares AppliedShares AllottedApp. Money ReceivedApp. DueBalanceAllotment Money Adjusted Call AdjustmentsRefund
   Rs.Rs.Rs.Rs.Rs.Rs.
18,0008,00064,00064,000  
212,0009,00096,00072,00024,00024,000 
318,00011,0001,44,00088,00056,00056,000 
445,00015,0003,60,0001,20,0002,40,0001,05,00075,00060,000
Total83,00043,0006,64,0003,44,0003,20,0001,85,00075,00060,000

It all about Question 23 Chapter 8 of +2-Part-1, If you have any problem please comment below.

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