Q 21 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)

Solutions of Question number 21 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)

Q. 21. Jyoti Power Ltd. decided to issue 8,50,000 equity shares of ₹ 10 each at a premium of ₹ 3 per share. The whole amount was payable on application. Applications for 20,00,000 shares were received. Applications for 3,00,000 shares were rejected and shares were allotted to the remaining applicants on pro-rata basis.

Pass necessary Journal entries for the above transactions in the books of the company.

[Ans. Amount returned ₹ 1,49,50,000.]

Solution:-

Note:- All whole money is received on application, thus excess amount on pro rata allotment on 8,50,000 shares will also be returned.