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Asked: January 7, 20232023-01-07T07:03:31+00:00 2023-01-07T07:03:31+00:00

Date: 02/01/2023 Shift: 9:00 AM – 11:00 AM Q. No: 65

QnA Bot Enlightened

Q.65	ABC Ltd. have subscribed capital of 40,000 equity shares of ₹100, each fully called up. The company decided a rights issue is to be made in the ratio of one fully paid-up share for every 5 shares held at a premium of ₹25 per share. Select the correct journal entries for the same.

Ans	A. 1. Bank A/c … Dr 8,00,000 To Share Application A/c 8,00,000 2. Share Application A/c … Dr 8,00,000 To Rights Issue A/c 8,00,000
	B. 1. Bank A/c … Dr 10,00,000 To Share Application A/c 10,00,000 2. Share Application A/c … Dr 10,00,000 To Equity Share Capital A/c 8,00,000 To Securities Premium A/c 2,00,000
	C. 1. Bank A/c … Dr 10,00,000 To Share Rights Issue A/c 10,00,000 2. Share Rights Issue A/c … Dr 10,00,000 To Equity Share Capital A/c 8,00,000 To Securities Premium A/c 2,00,000
	D. 1. Rights Issue A/c … Dr 10,00,000 To Share Application A/c 10,00,000 2. Share Application A/c … Dr 8,00,000 To Equity Share Capital A/c 8,00,000

Correct Ans Provided: B

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