Q 121 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)

Solution of Question number 121 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)

Vinod Papers Ltd. invited applications for issuing 1,00,000 shares of ₹ 10 each at a premium of ₹ 4 per share payable as follows:

On Application	₹ 4 (including premium ₹ 2)
On Allotment	₹ 4 (including premium ₹ 2)
On First and Final Call	₹ 6

Applications were received for 1,30,000 shares and pro-rata allotment was made to all applicants as follows:

(I) Applicants for 80,000 shares were allotted 60,000 shares, and

(ii) Applicants for 50,000 shares were allotted 40,000 shares.

X, who belonged to the first category and was allotted 900 shares failed to pay the allotment and call money.

Y, who belonged to the second category and who applied for 1,000 shares also failed to pay the allotment and call money. Their shares were forfeited and 1,400 of the forfeited shares were re-issued @ ₹ 9 per share as fully paid. Re-issued shares included whole of Y’s shares.

Prepare Cash Book, journal entries and an opening Balance Sheet.

[Ans. Cash at Bank ₹ 13,97,600; Cash received on allotment ₹ 2,75,200; Balance of Share Forfeiture A/c ₹ 1,000; Capital Reserve ₹ 3,000; Balance of Securities Premium A/c ₹ 3,96,600; Total of Balance Sheet ₹ 13,97,600.]

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