Question 28 Chapter 8 of Class 12 Part – 2 – 2024
28. (Prorata Allotment/Refund) A company invited applications for 50,000 shares of 10 each on the following terms :
On application RS. 3
On allotment Rs. 2
On first and final call Rs. 5
Applications were received for 1,10,000 shares. It was decided (i) to refuse allotment to the applications for 10,000 shares (ii) to allot 50 percent to Mr. Black who applied for 20,000 shares (iii) to allot in full to Mr. Brown who applied for 10,000 shares (iv) to allot balance of available shares equitably among the other applicants and (v) to utilize excess application money in part payment of allotment and final call.
Give journal entries till the stage of allotment assuming that the entire sum due on allotment is received in full.
The solution of Question 28 Chapter 8 of Class 12 Part – 2 – 2024: –
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| Journal |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| A) | Bank A/c | Dr. | 3,30,000 | ||
| To Share Application A/c | 3,30,000 | ||||
| (Being application money received on 1,10,000 shares @ Rs. 3 per share) | |||||
| B) | Share Application A/c | Dr. | 3,30,000 | ||
| To Share capital A/c WN-1 | 1,50,000 | ||||
| To Share Allotment A/c WN-1 | 80,000 | ||||
| To Calls in advance A/c WN-1 | 70,000 | ||||
| To Bank A/c WN-1 | 30,000 | ||||
| (Being application money on 50,000 shares transferred to share capital A/c & refunded on 10,000 rejected applications) | |||||
| (C) | Share AllotmentA/c | Dr. | 1,00,000 | ||
| To Share capital A/c | 1,00,000 | ||||
| (Being allotment money due on 50,000 shares @ Rs. 2 per share) | |||||
| (D) | Bank A/c WN-2 | Dr. | 20,000 | ||
| To Share Allotment A/c | 20,000 | ||||
| (Being balance allotement money received) | |||||
Working notes:
WN – 1 – Analysis Table
| Categories | Shares Applied | Shares Allotted | App. Money Received | App. Due | Surplus | Allotment Money Due | Surplus adjusted towards allotment |
Surplus | 1st Call Money due | Surplus adjusted towards 1st call | Surplus | Refund |
| (1) | (2) | 3 = (1) X Rs.3 |
(4)= (2) X 3 |
(5)= (3) – (4) |
(6)= (2) X Rs2 |
(7) | (8)= (5) – (7) |
(9)= (2) X Rs.5 |
(10) | (11)= (8)-(10) |
12 | |
| Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | Rs. | |||||
| Refused | 10,000 | – | 30,000 | – | – | – | – | – | – | – | – | 30,000 |
| Mr. Black | 20,000 | 10,000 | 60,000 | 30,000 | 30,000 | 20,000 | 20,000 | 10,000 | 50,000 | 10,000 | – | – |
| Mr. Brown | 10,000 | 10,000 | 30,000 | 30,000 | – | 20,000 | – | – | 50,000 | – | – | – |
| Pro. Rata | 70,000 | 30,000 | 2,10,000 | 90,000 | 1,20,000 | 60,000 | 60,000 | 60,000 | 1,50,000 | 60,000 | – | – |
| Total | 1,10,000 | 50,000 | 3,30,000 | 1,50,000 | 1,50,000 | 1,00,000 | 80,000 | 70,000 | 2,50,000 | 70,000 | – | 30,000 |
WN – 2 – Calculation of Amount received on allotment: –
| Rs. | |
| Allotment amount due | 1,00,000 |
| Less: –already received in the form of excess app. Money | 80,000 |
| Total | 20,000 |
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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)
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 – Ratio Analysis
Chapter No. 15 – Cash Flow Statement
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.
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1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication