Software solution India Ltd inviting application for 20,000 equity share of Rs 100 each, payable Rs 40 on application, Rs 30 on allotment and Rs 30 on call. The company received applications for 32,000 shares. Application for 2,000 shares were rejected and money returned to Applicants. Applications for 10,000 shares were accepted in full and applicants for 20,000 share allotted half of the number of share applied and excess application money adjusted into allotment. All money received due on allotment and call. Prepare journal and cash book.

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Books of Software Solution India Ltd.

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

Equity Share Application A/c

Dr.

12,00,000

To Equity Share Capital A/c

8,00,000

To Equity Share Allotment A/c

4,00,000

(Application money transferred to Equity Share Capital for 20,000 shares @ Rs 40 and Rs 4,00,000 is adjusted towards allotment)

Equity Share Allotment A/c

Dr.

6,00,000

To Equity Share Capital A/c

6,00,000

(Equity Share Allotment money due on 20,000 @ Rs 30

per share)

Equity Share First and Final call A/c

Dr.

6,00,000

To Equity Share Capital A/c

6,00,000

(Equity share on First and Final call due on 20,000 @

Rs 30 per share)

Cash Book (Bank Column)

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

Equity Share Application

12,80,000

Equity Share Application

80,000

Equity Share Allotment

2,00,000

Balance c/d

20,00,000

Equity Share First and Final Call

6,00,000

20,80,000

20,80,000

Working Note:

Amount due on Allotment for 20,000 shares @ Rs 30 per share

6,00,000

Money adjusted on application 10,000 shares @ Rs 40 each

4,00,000

Money to be received on Allotment

2,00,000

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Similar questions

Q. Software solution India Ltd inviting application for Rs. 20,000 equity share of Rs. 100 each, payable Rs. 40 on application, Rs.30 on allotment and Rs. 30 on call. The company received applications for 32,000 shares. Application for 2,000 shares were rejected and money returned to Applicants. Applications for 10,000 shares were accepted in full and applicants for 20,000 shares allotted half of the number of share applied and excess application money adjusted into allotment. All money received due on allotment and call. Prepare journal and cash book.

Q. Gas Ltd. issued 1,00,000 equity shares of Rs.10 each payable as follows. Rs.3 on application, Rs.3 on allotment, Rs.2 on first call and Rs.2 on second and final call. The Company received application for 1,50,000 shares.
The allotment was made as under.
Applicants for 50,000 shares were allotted in full. Applicants for 80,000 shares were allotted 50,000 shares on pro-rata basis and applicants for 20,000 shares were rejected. The amount of excess application money available for adjustment against allotment is:

A company issued 4,000 equity shares of Rs. 10 each at par payable as under :

On application Rs. 3; On allotment Rs. 2; On first call Rs. 4 and on final call Rs. 1 per share

Applications were received for 13,000 shares. Applications for 3,000 shares were rejected and pro-rata allotment was made to the applicants for 10,000 shares. How much amount will be received in cash on the first call? Excess application money is adjusted towards the amount due on allotment and calls.

PRACTICAL PROBLEMS

(Over subscription- Some over application refunded and rest used for allotment)

ONGC Ltd. invited applications for 25,000 shares of Rs 100 each payable as under-

On Application Rs 20		On Allotment	Rs 40
On First Call Rs 25, and		On Final Call	Rs 15

Public applied for 40,000 shares, out of which 10,000 shares were rejected and money on 5,000 shares was diverted to share allotment. All the allotment and calls money was received.
Pass journal entries in the journal of ONGC Ltd.

Mohit Glass Ltd. issued 20,000 shares of Rs 100 each at Rs 110 per share, payable Rs 30 on application, Rs 40 on allotment (including Premium), Rs 20 on first call and Rs 20 on final call. The applications were received for 24,000 shares and allotted 20,000 shares and reject 4,000 shares and amount returned thereon. The money was duly received.

Give journal entries.

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Books of Software Solution India Ltd. Journal
Date	Particulars			L.F.	Debit Amount Rs	Credit Amount Rs
	Equity Share Application A/c		Dr.		12,00,000
		To Equity Share Capital A/c				8,00,000
		To Equity Share Allotment A/c				4,00,000
	(Application money transferred to Equity Share Capital for 20,000 shares @ Rs 40 and Rs 4,00,000 is adjusted towards allotment)

	Equity Share Allotment A/c		Dr.		6,00,000
		To Equity Share Capital A/c				6,00,000
	(Equity Share Allotment money due on 20,000 @ Rs 30 per share)

	Equity Share First and Final call A/c		Dr.		6,00,000
		To Equity Share Capital A/c				6,00,000
	(Equity share on First and Final call due on 20,000 @ Rs 30 per share)

Cash Book (Bank Column)
Dr.				Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
	Equity Share Application		12,80,000		Equity Share Application		80,000
	Equity Share Allotment		2,00,000		Balance c/d		20,00,000
	Equity Share First and Final Call		6,00,000
			20,80,000				20,80,000

Amount due on Allotment for 20,000 shares @ Rs 30 per share	6,00,000
Money adjusted on application 10,000 shares @ Rs 40 each	4,00,000
Money to be received on Allotment	2,00,000