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A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th?
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A co. issued 10000 shares of 10 each at a premium of ₹1 per share paym...
Solution:
Given,
- The company issued 10,000 shares of Rs.10 each at a premium of Rs.1 per share.
- Payment to be made as follows: On application Rs. 3, On allotment Rs. 4 (including premium), on first call Rs. 2, and on second and final call Rs. 2.
- Applications were received for 20,000 shares.
- Applications for 5,000 shares were rejected.
To solve this problem, we need to follow the given steps:
Step 1: Calculate the amount of money received from the application process.
Total amount received from the application process = Number of shares applied * Amount to be paid on application
= 20,000 * Rs.3
= Rs.60,000
Step 2: Calculate the amount of money to be refunded.
Since the company received applications for 20,000 shares but only issued 10,000 shares, it needs to refund the money to the applicants who did not receive any shares.
Amount to be refunded = Money received - (Number of shares issued * Amount to be paid on allotment)
= Rs.60,000 - (10,000 * Rs.4)
= Rs.20,000
Step 3: Calculate the total amount received from the allotment process.
Total amount received from the allotment process = Number of shares issued * Amount to be paid on allotment
= 10,000 * Rs.4
= Rs.40,000
Step 4: Prepare the journal entries for the above transactions.
Journal entries for the application process:
Bank A/c Dr. 60,000
To Share Application A/c 60,000
Journal entries for the refund process:
Share Application A/c Dr. 20,000
To Bank A/c 20,000
Journal entries for the allotment process:
Bank A/c Dr. 40,000
Share Allotment A/c Dr. 10,000
To Share Capital A/c 1,00,000
(Being shares allotted at a premium)
Step 5: Prepare the balance sheet after the allotment process.
Liabilities Amount Assets Amount
Share Capital 1,00,000 Land and Building 50,000
Share Premium 10,000 Plant and Machinery 25,000
Share Allotment 10,000 Bank 55,000
Calls in Arrears 20,000
Total 1,40,000 Total 1,30,000
Note:
- The balance sheet is prepared assuming that all the shareholders have paid the first call.
- Calls in arrears represent the amount due from the shareholders who have not paid the first call.
Given,
- The company issued 10,000 shares of Rs.10 each at a premium of Rs.1 per share.
- Payment to be made as follows: On application Rs. 3, On allotment Rs. 4 (including premium), on first call Rs. 2, and on second and final call Rs. 2.
- Applications were received for 20,000 shares.
- Applications for 5,000 shares were rejected.
To solve this problem, we need to follow the given steps:
Step 1: Calculate the amount of money received from the application process.
Total amount received from the application process = Number of shares applied * Amount to be paid on application
= 20,000 * Rs.3
= Rs.60,000
Step 2: Calculate the amount of money to be refunded.
Since the company received applications for 20,000 shares but only issued 10,000 shares, it needs to refund the money to the applicants who did not receive any shares.
Amount to be refunded = Money received - (Number of shares issued * Amount to be paid on allotment)
= Rs.60,000 - (10,000 * Rs.4)
= Rs.20,000
Step 3: Calculate the total amount received from the allotment process.
Total amount received from the allotment process = Number of shares issued * Amount to be paid on allotment
= 10,000 * Rs.4
= Rs.40,000
Step 4: Prepare the journal entries for the above transactions.
Journal entries for the application process:
Bank A/c Dr. 60,000
To Share Application A/c 60,000
Journal entries for the refund process:
Share Application A/c Dr. 20,000
To Bank A/c 20,000
Journal entries for the allotment process:
Bank A/c Dr. 40,000
Share Allotment A/c Dr. 10,000
To Share Capital A/c 1,00,000
(Being shares allotted at a premium)
Step 5: Prepare the balance sheet after the allotment process.
Liabilities Amount Assets Amount
Share Capital 1,00,000 Land and Building 50,000
Share Premium 10,000 Plant and Machinery 25,000
Share Allotment 10,000 Bank 55,000
Calls in Arrears 20,000
Total 1,40,000 Total 1,30,000
Note:
- The balance sheet is prepared assuming that all the shareholders have paid the first call.
- Calls in arrears represent the amount due from the shareholders who have not paid the first call.
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A co. issued 10000 shares of 10 each at a premium of ₹1 per share paym...
A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th?
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A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th?
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A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th? 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 A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th?.
A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th? 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 A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th?.
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A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th?, a detailed solution for A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th? has been provided alongside types of A co. issued 10000 shares of 10 each at a premium of ₹1 per share payment to be made as follows: On application 3 On allotment 4 ( including premium) On first call 2 On second and final call 2 Application were received for 20000 shares, application for 5000 shares were rejected and allotment was made proportionately to th? theory, EduRev gives you an
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