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Solution of Unit 1
Solution of Unit 1
Issue of shares
Answer: 1
Journal entries in the books of the Q Ltd
Sr Date Particulars LF Debit Credit(Rs.)
No. (Rs.)
1 ? Bank A/c 3,00,000
………………………………….Dr
To share application A/c[50000x6] 3,00,000
Ans 2. Working
Category Share Share Application Disposition
application Allotment money received
Working Money Received on Allotment & Calls in Arrears of Mr. Preet Rs.
Notes: Total money due
1 Less: Amt not paid by Preet 6,00,000
Shares Allotted Appl. (Pro Rata)
40,000 50,000
1,600 ? (50,000 x 1600 /40,000)
= 2000 shares
Allotment money due = 1600 x 15 = 24,000
Less: Excess App. Money = 400 x 2 = 8,00
Calls in Arrears
Bal.
23,200
Less: Excess App. money adjusted towards allot
5,76,800
20,000
5,56,800
2 Transfer of Net Gain to Capital Reserve
Forfeiture amt of Preet 4,000
Forfeiture of Meet (Partial Reissue)
800 shares Rs. 4000
So, for 400 shares ? (400 x 4000 / 800)
2,000
6,000
Less: Loss on reissue
2,000
Tr. to Capital Reserve
4,000