Read the following text. Based on the information given , you are required to answer
X Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each. The amount was payable as follows:
On Application: ₹ 2 per share
On Allotment: ₹ 2 per share
On First Call: ₹ 3 per share
On Second and Final Call:
Balance amount Applications for 70,000 shares were received. Applications for 10,000 shares were rejected and the application money was refunded.
Shares were allotted to the remaining applicants on a pro-rata basis and excess money received with applications was transferred towards sums due on allotment and calls, if any. Gopal, who applied for 600 shares, paid his entire share money with application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were re-issued to Sultan for ₹ 20,000; ₹ 4 per share paid up. The first call money and the second and final call money was called and duly received.
1. Which account is debited when application money refunded?
(A)Bank A/c
(B)Share Capital A/c
(C)Share allotment A/c
(D)Share application A/c
2. What is the amount of application money transferred to Calls in Advance (from Gopal)?
(A)₹4,800
(B)₹4,000
(C)₹800
(D)₹6000
3. For calls in advance adjusted ----
(A) Calls in arrear A/c is debited
(B)Call in advance is debited
(C)Calls in advance A/c is Credited
(D)Bank a/c is debited
4. After reissue of shares , for transfer of balance in Share forfeiture A/c ---
(A) Bank a/c is Credited
(B) Share forfeiture is credited
(C) Capital Reserve A/c is credited
(D)Capital Reserve A/c is debited
