Answer: 22,000 shares allotted; equity share capital ₹ 22,00,000 fully called and paid (application ₹ 4,40,000, allotment ₹ 6,60,000, first call ₹ 4,40,000, second and final call ₹ 6,60,000).
The issue is under-subscribed (22,000 applications against 25,000 shares offered), so shares are allotted only to the 22,000 applicants; there is no excess application money and no calls in arrears.
Journal entries in the books of Mohini Co. Ltd.
| Particulars | Debit (₹) | Credit (₹) |
|---|
(1) Bank A/c ............ Dr.
To Equity Share Application A/c
(Being application money received on 22,000 shares @ ₹ 20) | 4,40,000 |
4,40,000 |
(2) Equity Share Application A/c ............ Dr.
To Equity Share Capital A/c
(Being application money transferred to capital on allotment of 22,000 shares) | 4,40,000 |
4,40,000 |
(3) Equity Share Allotment A/c ............ Dr.
To Equity Share Capital A/c
(Being allotment money due on 22,000 shares @ ₹ 30) | 6,60,000 |
6,60,000 |
(4) Bank A/c ............ Dr.
To Equity Share Allotment A/c
(Being allotment money received) | 6,60,000 |
6,60,000 |
(5) Equity Share First Call A/c ............ Dr.
To Equity Share Capital A/c
(Being first call due on 22,000 shares @ ₹ 20) | 4,40,000 |
4,40,000 |
(6) Bank A/c ............ Dr.
To Equity Share First Call A/c
(Being first call money received) | 4,40,000 |
4,40,000 |
(7) Equity Share Second and Final Call A/c ............ Dr.
To Equity Share Capital A/c
(Being second and final call due on 22,000 shares @ ₹ 30) | 6,60,000 |
6,60,000 |
(8) Bank A/c ............ Dr.
To Equity Share Second and Final Call A/c
(Being second and final call money received) | 6,60,000 |
6,60,000 |
Total equity share capital = 22,000 × ₹ 100 = ₹ 22,00,000; total cash received = ₹ 22,00,000.
OR: Features of Computerized Accounting System
- Online input and storage: transactions are entered once through the keyboard or other devices and stored in the computer's memory or database; they can be stored in large volume in a small space.
- Simultaneous processing: one entry automatically updates the journal, ledger accounts, trial balance and final accounts, so books are always up to date.
- Speed: recording, posting, balancing and preparing reports are done in a very short time compared to manual accounting.
- Accuracy: totalling, balancing and calculations are done by the computer, so arithmetical errors are almost eliminated.
- Quick retrieval of information: any account, voucher or report can be found and displayed instantly using search options.
- Real-time reports (MIS): the system produces trial balance, final accounts, ratio reports, outstanding lists and other management information reports whenever required.
- Security: data is protected by passwords and user rights, and backup copies can be kept.
- Legibility and uniformity: printed vouchers, invoices and statements are neat, clear and in a standard format.
- Scalability: the system can easily handle a growing number of transactions as the business expands.
- Automated document production: invoices, receipts, cheques, pay slips and statements can be generated directly from the data.
