Q 123 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)

Solution of Question number 123 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)

X Ltd. issued 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as follows:

₹ 3 on Application

₹ 6 on Allotment (including premium) and

₹ 3 on call.

Applications were received for 75,000 shares and pro-rata allotment was made as follows:

To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000 shares were issued. All moneys due were received except the allotment and call money from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his shares were forfeited. The forfeited shares were re-issued for ₹ 7 per share fully paid-up.

Pass necessary journal entries for the above transactions.

[Ans. Amount received on allotment ₹ 2,20,500; Amount received on first & final call ₹ 1,47,300; Amount transferred to Capital Reserve ₹ 900.]

Solution:-