Question

1
Hunam Ltd. took over the assets of 6,80,000 and liabilities of 80,000 of Ramtel Ltd.
for a consideration of 7,00,000. 20% was paid by a cheque and the balance by issue
of fully paid equity shares of 100 each at a premium of 40%. Pass the necessary
journal entries in the books of Hunam Ltd. for these transactions.

Answer 1

Answer:

12. The Bangalore bottling co ltd., issued a prospectus inviting applications for 100000 equity

shares of rs. 10 each, payable as Rs.2 on application, Rs. 3 on allotment and the balance at

the discretion of the directors. Applications for 120000 shares were received. The directors

allotted the shares as follows:

To applicants of 80000 shares – Full allotted

To applicants of 30000 shares - 20000 shares

To applicants of 10000 shares -Nil

Give journal entries, assuming that the entire sum due on allotment has been received and no

call has been made.