12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-6
question_answer
A limited company issued a prospectus inviting applications for 2,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as follows:
On application
Rs. 2 per share
On allotment
Rs. 5 per share (including premium)
On first call
Rs. 3 per share
On second call
Rs. 2 per share
Applications were received for 3,000 shares and allotment made pro-rata to the applicants of 2,400 shares, the remaining applications being refused. Money overpaid on applications was employed on account of sums due to allotment. Taksh, to whom 40 shares were allotted, failed to pay allotment money and on his subsequent failure to pay first call, his shares were forfeited. Daksh, the holder of 60 shares, failed to pay the two calls and so his shares were also forfeited. All these shares were sold to Naksh credited as fully paid for Rs. 9 per share. Show the journal and cash book entries in the books of company. Or Mohan Ltd invited application for issuing 60,000 shares of Rs. 10 each at par. The amount was payable as follows: On application Rs. 2 per share; on allotment Rs. 3 per share; on first and final call Rs. 5 per share. Applications were received for 92,000 shares. Allotment was made on the following basis:
(i)
To applicants for 40,000 shares
Full
(ii)
To applicants for 50,000 shares
40%
(iii)
To applicants for 2000 shares
Nil
Rs. 1,08,000 was realised on account of allotment (excluding the amount carried from application money) and ? 2,50,000 on account of call. The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue. Pass journal entries in the books of Mohan Ltd to record the above transactions.
Answer:
JOURNAL
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Share Application A/c
Dr
4,800
To Share Capital A/c
4,000
To Share Allotment A/c
800
(Being application money transferred to share capital account)