[CBSE] Q. 15 Solution of Accounting for Share Capital TS Grewal Class 12 (2023-24)

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.

[Ans.: Oversubscription.]

Solution:-

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.

1. The excess money over application ₹ 6,00,000 can be returned
2. The excess money over application ₹ 6,00,000 can be adjusted on allotment.
3. A part of the excess money over application can be returned and rest can be adjusted in allotment money.