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P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.?
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P ltd issued a prospectus inviting applications for 1,00,000 shares of...
Call rs. 2 and on final call rs. 2. The issue was oversubscribed by 50,000 shares. The directors decided to allot the shares as follows:
(a) Applicants for 60,000 shares were allotted the full amount applied for.
(b) Applicants for 30,000 shares were allotted 50% of the amount applied for.
(c) Applicants for 20,000 shares were allotted 20% of the amount applied for.
All money due was duly received except the allotment and the first call money from one holder of 400 shares who became insolvent.
Prepare the journal entries to record the above transactions in the books of the company.
Solution:
1. To record the issue of shares:
Bank A/c Dr. 2,00,000
Share capital A/c Dr. 10,00,000
Share premium A/c Dr. 2,00,000
To Equity share capital application A/c 2,00,000
To Equity share capital allotment A/c 5,00,000
To Equity share capital first call A/c 3,00,000
To Equity share capital second call A/c 2,00,000
To Equity share capital final call A/c 2,00,000
To Share premium A/c 1,00,000 (being the issue of 1,00,000 shares of Rs. 10 each at a premium of Rs. 2 per share)
2. To record the excess application money:
Equity share capital application A/c Dr. 1,00,000
To Equity share capital allotment A/c 1,00,000 (being the excess application money transferred to allotment)
3. To record the allotment of shares:
Equity share capital allotment A/c Dr. 4,50,000
Share premium A/c Dr. 90,000
To Equity share capital A/c 5,00,000
To Share premium A/c 40,000 (being the allotment of shares at a premium of Rs. 2 per share)
4. To record the first call:
Equity share capital first call A/c Dr. 2,40,000
To Equity share capital A/c 2,40,000 (being the first call made on the shares)
5. To record the second call:
Equity share capital second call A/c Dr. 1,60,000
To Equity share capital A/c 1,60,000 (being the second call made on the shares)
6. To record the final call:
Equity share capital final call A/c Dr. 1,60,000
To Equity share capital A/c 1,60,000 (being the final call made on the shares)
7. To write off the amount due from the insolvent holder:
Bad debts A/c Dr. 2,800
To Equity share capital allotment A/c 2,000
To Equity share capital first call A/c 800 (being the amount due from the insolvent holder written off)
(a) Applicants for 60,000 shares were allotted the full amount applied for.
(b) Applicants for 30,000 shares were allotted 50% of the amount applied for.
(c) Applicants for 20,000 shares were allotted 20% of the amount applied for.
All money due was duly received except the allotment and the first call money from one holder of 400 shares who became insolvent.
Prepare the journal entries to record the above transactions in the books of the company.
Solution:
1. To record the issue of shares:
Bank A/c Dr. 2,00,000
Share capital A/c Dr. 10,00,000
Share premium A/c Dr. 2,00,000
To Equity share capital application A/c 2,00,000
To Equity share capital allotment A/c 5,00,000
To Equity share capital first call A/c 3,00,000
To Equity share capital second call A/c 2,00,000
To Equity share capital final call A/c 2,00,000
To Share premium A/c 1,00,000 (being the issue of 1,00,000 shares of Rs. 10 each at a premium of Rs. 2 per share)
2. To record the excess application money:
Equity share capital application A/c Dr. 1,00,000
To Equity share capital allotment A/c 1,00,000 (being the excess application money transferred to allotment)
3. To record the allotment of shares:
Equity share capital allotment A/c Dr. 4,50,000
Share premium A/c Dr. 90,000
To Equity share capital A/c 5,00,000
To Share premium A/c 40,000 (being the allotment of shares at a premium of Rs. 2 per share)
4. To record the first call:
Equity share capital first call A/c Dr. 2,40,000
To Equity share capital A/c 2,40,000 (being the first call made on the shares)
5. To record the second call:
Equity share capital second call A/c Dr. 1,60,000
To Equity share capital A/c 1,60,000 (being the second call made on the shares)
6. To record the final call:
Equity share capital final call A/c Dr. 1,60,000
To Equity share capital A/c 1,60,000 (being the final call made on the shares)
7. To write off the amount due from the insolvent holder:
Bad debts A/c Dr. 2,800
To Equity share capital allotment A/c 2,000
To Equity share capital first call A/c 800 (being the amount due from the insolvent holder written off)
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P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.?
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P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.?.
P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.?.
Solutions for P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.? in English & in Hindi are available as part of our courses for Commerce.
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P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.?, a detailed solution for P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.? has been provided alongside types of P ltd issued a prospectus inviting applications for 1,00,000 shares of rs. 10 each at a premium of rs. 2 per share payable as follows: on application rs. 2, on allotment rs. 5 (including premium), on first call rs. 3, on second & final call rs. 2. applications were received for 1,50,000 shares and prorata allotment was made on the applications for 1,20,000 shares.? theory, EduRev gives you an
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