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Question : Kirloskar Ltd. issued 20,000 shares of Rs. 10 each, payable Rs. 4 on application,  Rs. 3 on allotment and Rs. 3 on first and final call. Applications were received for 25,000 shares. The company decided to allot 20,000 shares on pro-rata basis and surplus of application money was adjusted for allotment money due.

Excess money adjusted towards Shares Allotment will be:

Option 1: Rs. 20,000

Option 2: Rs. 80,000

Option 3: Rs. 40,000

Option 4: Rs. 15,000


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Rs. 20,000


Solution : Answer = Rs. 20,000

JOURNAL OF KIRLOSKAR LTD.

Date

Particulars

L.F.

Dr.ro

Cr.( Rs.)

Bank A/c

...Dr.

1,00,000

To Shares Application A/c

(Application money received on 25,000 shares @  Rs. 4 per share)

1,00,000

Shares Application A/c

...Dr.

1,00,000

To Share Capital A/c (20,000 x Rs. 4)

To Shares Allotment A/c (5,000 x  Rs. 4)

(Application money transferred to Share Capital Account on 20,000 shares and excess money adjusted towards Shares Allotment)

80,000

20,000

Hence, the correct option is 1.

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