Q8. A Co. invited applications for 20,000 equity shares of 10 each payable as follows: On application * 5 On allotment On call 3 ₹2 Applications were received for 80,000 shares. It was decided (i) to refuse allotment to the applicants for 25,000 shares. (ii) to allot 50% to Mr. M who had applied for 20,000 shares. (iii) to allot in full to Mr. N who had applied for 5,000 shares. (iv) to allot the balance of the available shares on pro rata basis among the other applicants. Excess application money to be adjusted towards allotment only. Prepare Cash Book and Journal. Prepare a Balance Sheet showing share capital.
Q8. A Co. invited applications for 20,000 equity shares of 10 each payable as follows: On application * 5 On allotment On call 3 ₹2 Applications were received for 80,000 shares. It was decided (i) to refuse allotment to the applicants for 25,000 shares. (ii) to allot 50% to Mr. M who had applied for 20,000 shares. (iii) to allot in full to Mr. N who had applied for 5,000 shares. (iv) to allot the balance of the available shares on pro rata basis among the other applicants. Excess application money to be adjusted towards allotment only. Prepare Cash Book and Journal. Prepare a Balance Sheet showing share capital.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q8. A Co. invited applications for 20,000 equity shares of 10 each payable as follows:
On application 5
On allotment ₹3
On call
₹2
Applications were received for 80,000 shares. It was decided (i) to refuse allotment to the
applicants for 25,000 shares. (ii) to allot 50% to Mr. M who had applied for 20,000 shares.
(iii) to allot in full to Mr. N who had applied for 5,000 shares. (iv) to allot the balance of the
available shares on pro rata basis among the other applicants.
Excess application money to be adjusted towards allotment only.
Prepare Cash Book and Journal.
Prepare a Balance Sheet showing share capital.
Prepare Notes to Accounts.
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