Class 12 Exam > Class 12 Questions > Ashok ltd invited applications for 20000 shar...
Start Learning for Free
Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.?
Most Upvoted Answer
Ashok ltd invited applications for 20000 shares of Rs 10 each payable ...
Journal Entries for Ashok Ltd:
1. Application Stage:
- Dr. Bank Account (8000 shares x Rs 3) 24,000
- Cr. Share Application Account (8000 shares) 24,000
2. Allotment Stage:
- Dr. Share Application Account (8000 shares) 24,000
- Cr. Share Allotment Account (8000 shares x Rs 2) 16,000
- Cr. Share Application Refund Account (Rejected shares refund) 18,000
3. First Call Stage:
- Dr. Share Allotment Account (8000 shares) 16,000
- Cr. Share First Call Account (8000 shares x Rs 3) 24,000
4. Second Call Stage:
- Dr. Share First Call Account (8000 shares) 24,000
- Cr. Share Second Call Account (8000 shares x Balance amount)
5. Share Allotment (Pro Rata):
- Dr. Share Allotment Account (Remaining shares)
- Cr. Share Allotment Account (Pro Rata allotment amount)
6. Money Received:
- Dr. Bank Account (Amount received for allotted shares)
- Cr. Share Allotment Account (Amount received for allotted shares)
Explanation:
The journal entries are made to record the transactions related to the issue of shares by Ashok Ltd. Let's go through each stage in detail:
1. Application Stage:
At this stage, applicants apply for 20000 shares by paying Rs 3 per share. The company receives applications for 8000 shares and records the amount received in the Bank Account and the number of shares applied for in the Share Application Account.
2. Allotment Stage:
The company makes allotment of shares as follows:
- Applicants for 8000 shares are allotted the full amount and their application amount is transferred from the Share Application Account to the Share Allotment Account.
- Rs 18000 is refunded to the applicants whose applications were rejected. This refund is recorded in the Share Application Refund Account.
3. First Call Stage:
At this stage, the company collects the first call amount of Rs 3 per share from the allotted shareholders and records it in the Share First Call Account.
4. Second Call Stage:
The company collects the balance amount (second call) from the shareholders and records it in the Share Second Call Account. The specific amount for the second call is not mentioned in the given information.
5. Share Allotment (Pro Rata):
The remaining shares are allotted on a pro-rata basis to the applicants who did not receive the full allotment. The journal entry for this stage will depend on the specific number of shares and the pro-rata allotment amount.
6. Money Received:
Finally, the company receives the money for the allotted shares and records it in the Bank Account. The corresponding entry is made in the Share Allotment Account to reflect the amount received.
By following these journal entries, Ashok Ltd can accurately record the transactions related to the issue of shares and maintain proper accounting records.
1. Application Stage:
- Dr. Bank Account (8000 shares x Rs 3) 24,000
- Cr. Share Application Account (8000 shares) 24,000
2. Allotment Stage:
- Dr. Share Application Account (8000 shares) 24,000
- Cr. Share Allotment Account (8000 shares x Rs 2) 16,000
- Cr. Share Application Refund Account (Rejected shares refund) 18,000
3. First Call Stage:
- Dr. Share Allotment Account (8000 shares) 16,000
- Cr. Share First Call Account (8000 shares x Rs 3) 24,000
4. Second Call Stage:
- Dr. Share First Call Account (8000 shares) 24,000
- Cr. Share Second Call Account (8000 shares x Balance amount)
5. Share Allotment (Pro Rata):
- Dr. Share Allotment Account (Remaining shares)
- Cr. Share Allotment Account (Pro Rata allotment amount)
6. Money Received:
- Dr. Bank Account (Amount received for allotted shares)
- Cr. Share Allotment Account (Amount received for allotted shares)
Explanation:
The journal entries are made to record the transactions related to the issue of shares by Ashok Ltd. Let's go through each stage in detail:
1. Application Stage:
At this stage, applicants apply for 20000 shares by paying Rs 3 per share. The company receives applications for 8000 shares and records the amount received in the Bank Account and the number of shares applied for in the Share Application Account.
2. Allotment Stage:
The company makes allotment of shares as follows:
- Applicants for 8000 shares are allotted the full amount and their application amount is transferred from the Share Application Account to the Share Allotment Account.
- Rs 18000 is refunded to the applicants whose applications were rejected. This refund is recorded in the Share Application Refund Account.
3. First Call Stage:
At this stage, the company collects the first call amount of Rs 3 per share from the allotted shareholders and records it in the Share First Call Account.
4. Second Call Stage:
The company collects the balance amount (second call) from the shareholders and records it in the Share Second Call Account. The specific amount for the second call is not mentioned in the given information.
5. Share Allotment (Pro Rata):
The remaining shares are allotted on a pro-rata basis to the applicants who did not receive the full allotment. The journal entry for this stage will depend on the specific number of shares and the pro-rata allotment amount.
6. Money Received:
Finally, the company receives the money for the allotted shares and records it in the Bank Account. The corresponding entry is made in the Share Allotment Account to reflect the amount received.
By following these journal entries, Ashok Ltd can accurately record the transactions related to the issue of shares and maintain proper accounting records.
|
Explore Courses for Class 12 exam
|
|
Similar Class 12 Doubts
Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.?
Question Description
Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.?.
Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.?.
Solutions for Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.? in English & in Hindi are available as part of our courses for Class 12.
Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
Here you can find the meaning of Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.? defined & explained in the simplest way possible. Besides giving the explanation of
Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.?, a detailed solution for Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.? has been provided alongside types of Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.? theory, EduRev gives you an
ample number of questions to practice Ashok ltd invited applications for 20000 shares of Rs 10 each payable as follows. Rs 3 on application Rs 2 on allotment and Rs 3 on first call and balance om secomd call. Rs 90000 was allotment of share were made as follows. (1) To applicants for 8000 sgares full. (2) Rs 18000 were refunded as some of the applucations were rejected. (3) Remaining get pro rata allotment. All the money was duly received. Prepare journal.? tests, examples and also practice Class 12 tests.
|
|
Explore Courses for Class 12 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup