Solution of Q 18 Share Capital TS Grewal 2023-24 [CBSE]
Step-by-step solution of Question 18, Chapter 8 Accounting for Share Capital (Issue of Shares), TS Grewal Class 12 Accountancy 2023-24 for the CBSE Board.
Question 18
Eastern India Company Limited, having an authorised capital of ₹ 10,00,000 divided into shares of ₹ 10 each, issued 50,000 shares at a premium of ₹ 3 per share payable as follows:
On Application ₹ 3 per share;
On Allotment (including premium) ₹ 5 per share;
On First Call (due three months after allotment) ₹ 3 per share;
and the balance as and when required.
Applications were received for 60,000 shares and the directors allotted the shares as follows:
- (i) Applicants for 40,000 shares received in full.
- (ii) Applicants for 15,000 shares received an allotment of 8,000 shares.
- (iii) Applicants for 5,000 shares received 2,000 shares on allotment, excess money being returned.
All amounts due on allotment were received.
The first call was made and the money was received except on 100 shares.
Give Journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company.
Solution
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About this solution
This is Chapter 8 Share Capital of TS Grewal Edition 2023-24.
Written by Vijay Adarsh, teaching commerce since 2003 to Class 11, Class 12, B.Com, CA, CS and CMA students.
We have solved all the practical questions in this book and explained them Step by Step in detail with clear working notes.
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