Question : To provide employment to the youth and to develop Baramula district of Jammu and Kashmir, Jyoti Power Ltd. decided to set up a power plant. For raising funds the company decided to issue 8,50,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The whole amount was payable on application. Applications for 20,00,000 shares were received. Applications for 3,00,000 shares were rejected and shares were allotted to the remaining applicants on pro rata basis.
On the basis of the above information, choose the correct option for the following question
Question:- Amount refunded ___________.
Option 1: Rs 1,49,50,000
Option 2: Rs 11,50,000
Option 3: Rs 25,50,000
Option 4: None of theses
Correct Answer: Rs 1,49,50,000
Solution :
Answer = 14,50,000
JOURNAL
|
Date |
Particulars |
L.F. |
Dr. ( Rs.) |
Cr.( Rs.) |
|
|
Bank A/c |
...Dr. |
2,60,00,000 |
|||
|
To Equity Shares Application and Allotment A/c (Application and allotment money received on 20,00,000 shares of Rs. 10 each @ Rs. 13 per share) |
2,60,00,000 |
||||
|
Equity Shares Application and Allotment A/c |
|||||
...Dr.
2,60,00,000
To Equity Share Capital A/c (8,50,000 x Rs. 10)
To Securities Premium Reserve A/c (8,50,000 x Rs. 3)
To Bank A/c (11,50,000 x Rs. 13)
(Application and allotment money adjusted for 8,50,000 shares and the balance refunded)
85,00,000
25,50,000
1,49,50,000
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