Are you looking for the solution to Question number 15 of the Accounting for Share Capital chapter of TS Grewal Book 2023-24 Edition CBSE Board?
Faber Ltd. Invited applications for 70,000 equity shares of ₹ 100 each. The application money received @ ₹ 30 per share was ₹ 27,00,000. Name the kind of subscription. List the three alternatives for allotting these shares.
As actual money of the application is (70,000 * 3) ₹ 21,00,000 and on Application, there are ₹ 27,00,000 is received. Thus It is the case of over-subscription.
- The excess money over application ₹ 6,00,000 can be returned
- The excess money over application ₹ 6,00,000 can be adjusted on allotment.
- A part of the excess money over application can be returned and rest can be adjusted in allotment money.