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X Limited offed to the public 10,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share payable as follows : On application Rs. 3, On allotment (including premium) Rs. 4, On first call Rs. 3 and on second and final call Rs. 2. Applications were received for 15,000 shares. All applications were placed under four categories and allotment was made as follows : {:("Category A : to applicants of 4,000 share","in full"),("Category B : to applicants of 6,000 share","4,000 shares"),("Category C : to applicants of 3,000 shares","2,000 shares"),("Category D : to applications of 2,000 shares","Nil"):} Except in the cases where applications were wholly rejected, excess application money was not to be refunded to be adjusted against moneys due on allotment and calls. A, an applicant under category B to whom 400 shares were allotted failed to pay the allotment money and on his failure to pay the first call his shares were forfeited. B, an applicant under category C to whom 300 shares were allotted failed to pay both the calls and his shares were also forfeited. 500 of the shares thus forfeited were re-issued to C as fully paid for Rs. 8 per share. Show Cash Bok, Journal entries and prepare the Balance Sheet in the books of the company, you are to assume that the whole of the A's shares were issued to C.

Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<a href="https://interviewquestions.tuteehub.com/tag/cash-910172" style="font-weight:bold;" target="_blank" title="Click to know more about CASH">CASH</a> <a href="https://interviewquestions.tuteehub.com/tag/received-1179289" style="font-weight:bold;" target="_blank" title="Click to know more about RECEIVED">RECEIVED</a> on allotment Rs. 30,000, Balance of Share Forfeiture A/c Rs. 1,000, Capital Reserve Rs. 1,300, Securities <a href="https://interviewquestions.tuteehub.com/tag/premium-2555" style="font-weight:bold;" target="_blank" title="Click to know more about PREMIUM">PREMIUM</a> Reserve Rs. 19,200, Cash at Bank Rs. 1,19,500, Balance Sheet Total Rs. 1,19,500. <br/> <a href="https://interviewquestions.tuteehub.com/tag/hint-486738" style="font-weight:bold;" target="_blank" title="Click to know more about HINT">HINT</a> : Premium will be debited at the time forfeiture of A's Shares.</body></html>


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