CBSE 2023 · Region 2 · Set 1 · Q25

Garda Ltd. invited applications for issuing $\displaystyle 10,000$ equity shares of ₹ $\displaystyle 10$ each. The amount per share was payable as follows : ₹ $\displaystyle 2$ on application, ₹ $\displaystyle 3$ on allotment, ₹ $\displaystyle 3$ on first call and ₹ $\displaystyle 2$ on second and final call. Applications were received for $\displaystyle 15,000$ shares. The applications for $\displaystyle 3,000$ shares were rejected and application money refunded. The shares were allotted on pro-rata basis to the applicants of $\displaystyle 12,000$ shares. Excess money received with applications was adjusted towards sums due on allotment. All shareholders paid the allotment money except one shareholder who was allotted $\displaystyle 200$ shares. These shares were forfeited. The first call was made thereafter and duly received. The second and final call was not yet made. Pass Journal entries for the above transactions in the books of Garda Ltd. Open Calls-in-Arrears Account wherever required.

OR

Mukund Ltd. invited applications for issuing $\displaystyle 50,000$ equity shares of ₹ $\displaystyle 10$ each at $\displaystyle 10$% premium. The amount per share was payable as follows : ₹ $\displaystyle 3$ on application, ₹ $\displaystyle 3$ (including premium) on allotment and balance amount on first and final call. Applications were received for $\displaystyle 1,20,000$ shares and shares were allotted on pro-rata basis to all the applicants. The excess money received on application was adjusted towards sums due on allotment only. Application money in excess to sums due on allotment was refunded. A shareholder who had applied for $\displaystyle 6,000$ shares, could not pay the call money and his shares were forfeited. Pass necessary Journal entries for the above transactions in the books of Mukund Ltd.