pVER SUBSCRIPTION

23. (Over Subseription/Refund/Pro-rata) Alkins company issued prospectus inviting applications

for 22.c00 shares ofR 100. Applications were received for 25,000 shares. Amount is payable ; 25
on application: R 45 on allotment and balance on call money.

Pass journal entries:

When application for 3,000 shares are rejected and excess money is refunded
) When surplus application money is utilised towards allotment.
24. (Ful/Pro-rata Allotment/Rejection) Pilot Ltd. issued 10,000 equity shares of 7 10 each,
payable2 on application, R 3 on allotment and balance on first and final call. Applications were
received for 12,000 shares and shares allotted
were as under
Company Accounts (Share Capital)
8.105
Applicants for 8,000 sharos were allotted in full, those who
2,000 shares and applications for
1,000 sharea
applied for 3.000 shares were allotted
received. Pass the necessary were
rejected. Whole of the money was called and
journal entries in the books of
Ans. Amount rofunded 7 2,000;
adjusted 7 2,0o0
company.
25. (Pro-rata Allotment) Ranjit
appliod for 2,000 shares of 7 10 each in Bawa Shoes
amount being payable R 3 on
application 5 on allotment and ? 2 on final eall HeCompany.
1,500 sharos. Excess money was
The
allotted
retained for future. Pass en'ries in journal.
was
26. (Various Oases of Allotment) Voltas Ltd. has issued prospectus inviting
43,000 shares of * 20 each payable 7 8 on applications for
Applications for 83,000 shares were received.application : 7 7 on allot ment and5 on inal call

Due to over subscription

the allotment was made as
follows
Category Shares Applied Shares Alloted
8,000 8,000
2
12,000 9,000
3
18,000 11.000
4
45.000 15.000
83.000 43.000
You required to prepare a statement showing the treatment under the following situations.
are

(a) When application money received in excess is not retained.

(6) When application money received in excess is retained for allotment.
(c) When application money received in excess is retained for allotment and call.
Ans. Refund (a) F 3,20,000 (b) F 1,35,000 (c) F 60.000
27. (Prorata Allotment/Call in arrears/Oversubscription) Sugandh Ltd.. issued 60.000 shares
of R10each at a premium of R 2 per share payable as 3 on application. 5 (including premium
on allotment and the balance on first and final cal) Applications were received for 92.000 shares.
The directors resolved to allot as
) Applicants of 40,000 shares 30.000 shares
ii) Applicants of 50,000 shares 30,000 shares
(ii) Applicants of 2000 shares Nil
Mohan who had applied for 800 shares in category () and Sohan who was allotted 600 shares in
category (ii) failed to pay the allotment money. Calculate the amount received on allotment and
pass journal entries. (Delhi 2009)
Ans. Amount received on allotment 7 2,05,800]
28. (Pro-rata/Amount Received on Allotment) Meena Ltd. issued 30,000 shares of R 10 each at a
premium of T 2 per share payable as 7 S on application. F 5 (including premium) on allotment and
the balance on first and final call, Applications were received for 52,000 shares. The directors
resolved to allot as follows:
10,000 shares
(A) Applicants of 20,000 shares
20,000 shares
(B) Applicants of 30,000 shares
Nil
(C) Applicants of 2000 shares
Ganesh who was allotted 2000 shares in
Balu who had applied for 4,000 shares in category A and
Calculate the amount received on allotment. (C.B.S.E.
category B failed to pay allotment money.
2009, Outside Delhi Set III)
Ans. Amount received on allotment 7 79,000)
company invited applications for 50,000 shares
29. (Pro-rata Allotment/0versubscription) A
of 1 0 each on the following terms -

On application
On allotment
5
On first and final call
to refuse allotment to the
received for 1,10,000 shares. It
was decided (i)
Applications were
 8.106 Company Accounts (Bhare
p
aications for 10,00)
to
shnrs (ii) to

full to Mr. rown

aiot
n
wlho
allot 50 percont to M:

applied for 10,000

ack
shares
utilise
who
applied
to allt forf
Bhare Copa
among the applieantg and (v) to
other
sharns equiably
pa1 nrn of
allotment and final

Gve urnal entries till

call.
the stage of allotment assuming that tho
the entire sum
. .
aDplication monuy in
meeivd n full
t .
Aue on alotmen
Amount adjusted- 80,000
towards allotment; 7 70.000
000 towards calls
.Ans.
in
o,000 sharesadvanCe , and
30,000 refunded).
Glhnton Ltd. issued F 1000.
30. Ocr subscript ion/Pro-rata allotment)
100 shares, payable:
On application
10 per share divideded simas
On allotment
T 40 per share
On final payment 50 per share
Over-payments on application were to be applied towards sum d
payments on application exceeding sum due on allotment were to
and ment
be returned, ov.
alotment was made, money was to be returned in full. The issue was
extent of 13,000 shares. Applicants for 12,000 shares were allotted over Su
only scribed where
applicants for 2,000 shares were sent letters ot regret, and application deposi O00 sharesto the
them. All the money due on allotment and final call was duly received, Mo. was returm
entries in the company's books to record the above transactions. dt
the neces3sary
[Ans. Cash at bank 7 10,00,000].
31. (Oversubscriptionn/Pro-rata allotment) X Ltd. issued 80,000 equity shareo.
each on application, allotment, first call and final call. payable R2
bscriptions were received
shares. The directors allotted 80,000 shares, returned ayplicutions for 10,000 8hato 1,0.0
the money received thereon and adjusted the balance of over- subscriptionon a l l g wi
first and final calls were made at an interval of six months from the date of
allotman andhe the
moneys were realised in due course.
Give journal entries assuming that all sums due on allotment and calls have been
32. (Over Subscription/Full
received
Allotment/Pro-rata Allotment)
with a capital of F 50,00,000 divided in shares of R 10 each. The
Aman Textile was
ated
company invited applications fos
45,000 shares for public. Amount is payable R 4 on application and balance equally on allotment
and first & final call. Applications were received for 56,000 shares.
Any excess amount received
on application will be adjusted towards allotment.
The allotment was made as follows:
Applicants for 10,000-Allotted Nil
Applicants for 40,000-Allotted 100%
Applicants for 6,000-Allotted 5,000
On allotment, the total amount realised was 1,25,000 (including excessapplication money on
Pro-rata category) and on final call the amount realised
Show journal entries.
was 1,20,000.
33. (Over suhseription/Pro-rata allotment/call in advance)
10 each, payable as
Zerox Ltd. issued 50,000 shares
2 Application, payable on 1st January, 2018.
on

T3 Allotment, payable on 1st April, 2018.

on

2.50 on First call, payable on 1st

July, 2018.
2.50 on Final call, payable
on 1st November, 2018
Applications were received for 70,000 shares and allotment was made as
To Applicants for 46,000 under
shares, full allotment was mad
To Applicants for 18,000
shares, 4,000 shares
To Applicants for 6,000
shares, NIL