Q8. A Co. invited applications for 20,000 equity shares of 10 each payable as follows:On application 5On allotment ₹3On call₹2Applications were received for 80,000 shares. It was decided (i) to refuse allotment to theapplicants 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 theavailable 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.

Journal Entry - Journal entry is the recording of business transaction in books of account, this is…

Answered: Q8. A Co. invited applications for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subhas Ltd. invited applications for 20000 shares of Rs. 10 each at a premium of Rs.2 per share payable Rs.3 on application; Rs.7 on allotment including premium and the balance on first and final call. Applications for 25000 shares were received. It was decided: · To refuse allotment to the applicants for 1000 shares. · To allot in full to applicants for 4000 shares. · To allot the balance of shares pro-rata among the other applicants of the remaining applicants. · To utilize the excess application money in part payment of allotment money. Mr.‘A’ holding 200 shares which were allotted pro-rata failed to pay the amount due on allotment and call. Mr.‘B’ holding 100 shares to whom full allotment was made failed to pay the call money. Shares of both A and B were forfeited. 160 forfeited shares of ‘A’ and 40 forfeited shares of ‘B’ were reissued to Mr.’C’ Rs.9 per share. Journalize the transactions.
Sir please urgently plz
A company issued 10000 equity shares of Rs. 100 each. The payment was called upon as under: On Application- Rs. 30; On Allotment - Rs. 30; On I Call - Rs. 20; On II Call - Rs. 20; On Final Call - Rs. 20. X, holder of 1000 shares failed to pay Il and Final Call and his shares were forfeited. Give entry for issue and forfeiture of share. Also give journal entries for forfeiture, if: i. Shares of X are re-issued to Z for Rs. 80 as fully paid-up. ii. Shares of X are re-issued to Z for Rs. 120 as fully paid-up.
ABC Ltd. issued a prospectus for inviting application from the public for 10,000 equity shares of" $ 10 each. The amounts were payable as follows: $3 on Application, $2 on Allotment & the balance as and when called. Applications were received for 12,000 shares & the allotment was made as follows: Full applications for 8,000 shares 2,000 shares shares to remaining applicants and the excess application money is to be adjusted towards allotment. totally reject applications for 2,000 shares Pass Journal entries in the books of the company assuming that all allotment money was received and the call was not made.
ABC Ltd, issued a prospectus for inviting application from the public for 10,000 equityshares of " $ 10 each. The amounts were payable as follows: $3 on Application, $2 onAllotment & the balance as and when called.Applications were received for 12,000 shares & the allotment was made as follows:Full applications for 8,000 shares2,000 shares shares to remaining applicants and the excess application money isto be adjusted towards allotment.totally reject applications for 2,000 sharesPass Journal entries in the books of the company assuming that all allotment money wasreceived and the call was not made.
SORULAR (QUESTIONS) 1. ABC Ltd. issued a prospectus for inviting application from the public for 10,000 equity shares of $ 10 each. The amounts were payable as follows: $3 on Application, $2 on Allotment & the balance as and when called. Applications were received for 12,000 shares & the allotment was made as follows: • Full applications for 8,000 shares • 2,000 shares shares to remaining applicants and the excess application money is to be adjusted towards allotment. • totally reject applications for 2,000 shares Pass Journal entries in the books of the company assuming that all allotment money was received and the call was not made.
5.6A Applications were invited by the directors of Grobigg Ltd for 150,000 of its £1 ordinary shares at £1.15 per share payable as follows: Per share On application on 1 April 2018 On allotment on 30 April 2018 (including the premium of £0.15 per share) On first and final call on 31 May 2018 £0.75 £0.20 £0.20 Applications were received for 180,000 shares and it was decided to deal with these as follows: 1 To refuse allotment to applicants for 8,000 shares. 2 To give full allotment to applicants for 22,000 shares. 3 To allot the remainder of the available shares pro rata among the other applicants. 4 To utilise the surplus received on applications in part payment of amounts due on allotment. An applicant, to whom 400 shares had been allotted, failed to pay the amount due on the first and final call and his shares were declared forfeit on 31 July 2018. These shares were reissued on 3 September 2018 as fully paid at £0.90 per share. Show how the transactions would be recorded in the…
Green Ltd invited applications for 10,000 shares of Rs.100 each at a discount of 6% payable as follows; on application - Rs.25 On allotment - Rs.34 and on first and final call Rs.35. The applications received were for 9,000 shares and all of these were accepted. All money due were received except the first and final call on 100 shares which were forfeited. 50 shares were reissued @ Rs.90 as fully paid. Pass journal entries in the books of Green Ltd.
Please answer iv, v, vi and viii. Thanks
EF Ltd. invited applications for issuing 80,000 equity shares of Rs. 50 each at a premium of 20%. The amount was payable as follows : On Application : Rs. 20 per share (including premium Rs. 5) On Allotment: Rs. 15 per share (including premium Rs. 5) On First Call : Rs. 15 per share On Second and Final call : Balance amount Applications for 1,20,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Seema, holding 4,000 shares failed to pay the allotment money. Afterwards the first call was made. Seema paid allotment money along with the first call. Sahaj who had applied for 2,500 shares failed to pay the first call money. Sahaj’s shares were forfeited and subsequently reissued to Geeta for Rs. 60 per share, Rs. 50 per share paid up. Final call was not made. Pass necessary journal entries for the above transactions in the books of EF Ltd. by opening calls-in-arrears account.
Please answer option 1 and 2
Please answer i, ii ,iii. Thanks

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