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 Rs. 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.
Question:- Amount to be refunded:
Option 1: Rs. 25,50,000
Option 2: Rs. 1,49,50,000
Option 3: Rs. 65,00,000
Option 4: None of these
Correct Answer: Rs. 1,49,50,000
Solution : Answer = Rs. 1,49,50,000
In the Books of Jyoti Power Ltd.
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)
Equity Shares Application and Allotment A/c
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 2.
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
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