Q 52 DK Goel Issue of Shares Solutions Class 12 CBSE (2024-25)
Solutions of Question number 52 of Accounting for Companies Issue of shares chapter 6 of DK Goel Class 12 CBSE (2024-25)
A Co. Ltd. offered to the public 20,000 equity shares of ₹ 100 each at a premium of ₹ 10 per share. The payment was to be as follows:
| On Application | ₹ 30 per share |
| On Allotment | ₹ 30 per share (including Premium) |
| On First Call | ₹ 25 per share |
| On Second and Final Call | ₹ 25 per share |
Applications were received for 35,000 shares. Applications for 10,000 shares were rejected. Applicants for 15,000 shares were allotted 10,000 shares and remaining applications were accepted in full. The Directors made both the calls. One shareholder holding 500 shares failed to pay the two calls and as a consequence his shares were forfeited. 200 of these shares were re-issued as fully paid at ₹ 80 per share. Expneses of issue came to ₹ 10,000.
Prepare Cash Book and Journal on the basis of information given above. Also show the Share Capital in the Balance Sheet of the Company.
[Ans. Cash at Bank ₹ 21,81,000; Capital Reserve ₹ 6,000; Subscribed and Fully Paid Capital ₹ 19,70,000.]
Solution:-
