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ISSUE OF SHARES - OVER SUBSCRIPTION (Most Important Topic) Class 12 Accounts
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ISSUE OF SHARES - OVER SUBSCRIPTION (Most Important Topic) Class 12 Accounts Part-7 Session 2024-25
Oversubscription and Rejection
1. Goodwill Ltd. Offered for public subscription 60,000 equity shares of 10 each payable as follows:
On Application : ₹5
On Allotment ₹3
On First and Final Call: ₹2
Applications were received for 75,000 shares. The directors rejected applications for 15,000 shares and allotted in full to the applicants for remaining shares. Pass Journal Entries to record the above transactions.
2. Illustration 23. (Oversubscription, pro rata allotment and payment in instalments) Shah Ltd. issued 10,000 shares of 10 each, payable as:
On Application
: ₹3
On Allotment : ₹5
On First and Final Call : ₹2
Applications were received for 14,000 shares. The Directors decided to make allotment on pro rata basis and to utilise surplus of application money towards allotment. Calculate the excess application money to be adjusted towards allotment and pass the necessary Journal Entries assuming that the amounts due were received.
3. Bombay Ltd. Invited 20000 Equity share of Rs. 10 each at a premium of Rs.2 per share. The amount as follows:
Rs.2 on Application
Rs. 5 on Allotment (including premium)
Rs.5 on Ist and Final Call.
But the application received 35000 shares and Co. rejected 3000 shares and returned the money to them and balance was adjusted on Allotment.
#msacademyaccounts
#accounts
#issueofshares
#accounting
#accountancy
Oversubscription and Rejection
1. Goodwill Ltd. Offered for public subscription 60,000 equity shares of 10 each payable as follows:
On Application : ₹5
On Allotment ₹3
On First and Final Call: ₹2
Applications were received for 75,000 shares. The directors rejected applications for 15,000 shares and allotted in full to the applicants for remaining shares. Pass Journal Entries to record the above transactions.
2. Illustration 23. (Oversubscription, pro rata allotment and payment in instalments) Shah Ltd. issued 10,000 shares of 10 each, payable as:
On Application
: ₹3
On Allotment : ₹5
On First and Final Call : ₹2
Applications were received for 14,000 shares. The Directors decided to make allotment on pro rata basis and to utilise surplus of application money towards allotment. Calculate the excess application money to be adjusted towards allotment and pass the necessary Journal Entries assuming that the amounts due were received.
3. Bombay Ltd. Invited 20000 Equity share of Rs. 10 each at a premium of Rs.2 per share. The amount as follows:
Rs.2 on Application
Rs. 5 on Allotment (including premium)
Rs.5 on Ist and Final Call.
But the application received 35000 shares and Co. rejected 3000 shares and returned the money to them and balance was adjusted on Allotment.
#msacademyaccounts
#accounts
#issueofshares
#accounting
#accountancy
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