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Question : Kirloskar Ltd. issued 20,000 shares of Rs. 10 each, payable Rs. 4 on application, Rs. 3 on allotment and Rs. 3 on first and final call. Applications were received for 25,000 shares. The company decided to allot 20,000 shares on pro-rata basis and surplus of application money was adjusted for allotment money due.
Excess money adjusted towards Shares Allotment will be:
Option 1: Rs. 20,000
Option 2: Rs. 80,000
Option 3: Rs. 40,000
Option 4: Rs. 15,000
Correct Answer: Rs. 20,000
Solution : Answer = Rs. 20,000
JOURNAL OF KIRLOSKAR LTD.
Date
Particulars
L.F.
Dr.ro
Cr.( Rs.)
Bank A/c
...Dr.
1,00,000
To Shares Application A/c
(Application money received on 25,000 shares @ Rs. 4 per share)
Shares Application A/c
To Share Capital A/c (20,000
Question : Assertion-Reason Questions: Chapter - Sources of Business Finance
Questions : Business Finance and Its Meaning
Assertion: Financial planning is necessary for achieving business objectives effectively.
Reason: Financial planning helps allocate funds optimally and avoids wastage.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Both assertion and reason are false.
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
The assertion is true. Financial planning is indeed necessary
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