Q 101 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)
Solution of Question number 101 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)
On April 1, 2023 the Directors of Ashoka Metals Ltd. issued 60,000 equity shares of ₹ 10 each at ₹ 12 per share, the amount payable as ₹ 5 on application (including premium), ₹ 4 on allotment and the balance on July 15, 2023.
On April 10, 2023 applications were received for 80,000 shares. Of the cash received in excess, ₹ 40,000 were returned and ₹ 60,000 were applied towards the amount due on allotment. The balance of allotment money was received on April 30, 2023. All the shareholders paid the call cue on July 15, 2023, with the exception of one shareholder holding 500 shares. These shares were forfeited on August 31, 2023.
You are required to submit Journal Entries regarding the above transactions and also show the Share Capital in the Balance Sheet of the Company on August 31, 2023.
[Ans. Balance at Bank ₹ 7,18,500; Balance of Share Forfeiture A/c ₹ 3,500; Share Capital A/c ₹ 5,98,500. Subscribed and Fully Paid Capital ₹ 5,95,000.]
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