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D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :


On application Rs.20


On allotment Rs.50 (including premium)


On first call Rs.30


On second and final call Rs.20


Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.


 


Q.Application money adjusted against allotment = __________. a.

  • a)
    Rs 20,00,000

  • b)
    Rs 8,00,000

  • c)
    Rs 12,00,000

  • d)
    Rs 16,00,000

Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per...
Correct Answer :- B
Explanation : Total refund amount = (300000-240000) * 20 = 12,00,000
so , adjustment towards allotment (20,00,000 - 12,00,000) 
= 8,00,000.
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Most Upvoted Answer
D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per...
's shares being included in the reissue. Journalize the above transactions in the books of D Ltd.

Solution:

Calculation of total amount received and due:

Total amount received on application = 2,00,000 shares × Rs.20 per share = Rs.40,00,000
Total amount received on allotment = 2,40,000 shares × Rs.50 per share = Rs.1,20,00,000
(Considering excess application money used for allotment)
Total amount due on first call = 2,40,000 shares × Rs.30 per share = Rs.72,00,000
Total amount due on second and final call = 2,40,000 shares × Rs.20 per share = Rs.48,00,000

1. On receipt of applications:

Bank A/c Dr. 40,00,000
To Share Application A/c 40,00,000
(Being application money received)

2. On allotment:

Share Application A/c Dr. 48,00,000
Share Premium A/c Dr. 9,60,000
To Equity Share Capital A/c 40,00,000
To Share Allotment A/c 17,60,000
To Share Premium Reserve A/c 9,60,000
(Being 2,40,000 shares allotted at Rs.70 per share)

3. On receipt of first call:

Share Allotment A/c Dr. 72,00,000
To Equity Share Capital A/c 72,00,000
(Being first call money received)

4. On receipt of second and final call:

Equity Share Capital A/c Dr. 48,00,000
To Share First Call A/c 48,00,000
(Being second and final call money received)

5. On forfeiture of shares:

Share Allotment A/c Dr. 2,00,000
To Equity Share Capital A/c 2,00,000
(Being E's allotment money forfeited)

Share First Call A/c Dr. 1,80,000
To Equity Share Capital A/c 1,80,000
(Being E's first call money forfeited)

Share First Call A/c Dr. 1,80,000
To Equity Share Capital A/c 1,80,000
(Being F's first call money forfeited)

Share Second and Final Call A/c Dr. 1,20,000
To Equity Share Capital A/c 1,20,000
(Being F's second and final call money forfeited)

6. On reissue of forfeited shares:

Bank A/c Dr. 7,20,000
Loss on Reissue of Shares A/c Dr. 80,000
To Share Forfeiture A/c 8,00,000
(Being 8,000 shares reissued at a discount of 10%)

Note: Loss on reissue of shares = Face value - Reissue price
Loss on reissue of E's shares = Rs.100 - Rs.70 = Rs.30 per share
Total loss on reissue of 8,000 shares = Rs.30 × 8,000 = Rs.2,40,000
Loss on reissue of F's shares = Rs.100 - Rs.70 × 2 = Rs.60 per share
Total loss
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Community Answer
D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per...
Total refund amount = ( 300000-240000) * 20 = 12,00,000

so , adjustment towards allotment ( 20,00,000 -12,00,000 ) = 8lakh
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D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.Q.Application money adjusted against allotment = __________. a.a)Rs 20,00,000b)Rs 8,00,000c)Rs 12,00,000d)Rs 16,00,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.Q.Application money adjusted against allotment = __________. a.a)Rs 20,00,000b)Rs 8,00,000c)Rs 12,00,000d)Rs 16,00,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.Q.Application money adjusted against allotment = __________. a.a)Rs 20,00,000b)Rs 8,00,000c)Rs 12,00,000d)Rs 16,00,000Correct answer is option 'B'. Can you explain this answer?.
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Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.Q.Application money adjusted against allotment = __________. a.a)Rs 20,00,000b)Rs 8,00,000c)Rs 12,00,000d)Rs 16,00,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.Q.Application money adjusted against allotment = __________. a.a)Rs 20,00,000b)Rs 8,00,000c)Rs 12,00,000d)Rs 16,00,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.Q.Application money adjusted against allotment = __________. a.a)Rs 20,00,000b)Rs 8,00,000c)Rs 12,00,000d)Rs 16,00,000Correct answer is option 'B'. 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Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.Q.Application money adjusted against allotment = __________. a.a)Rs 20,00,000b)Rs 8,00,000c)Rs 12,00,000d)Rs 16,00,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.Q.Application money adjusted against allotment = __________. a.a)Rs 20,00,000b)Rs 8,00,000c)Rs 12,00,000d)Rs 16,00,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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