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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 


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

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

Hence, the correct option is 1.

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