1.
The
Bharat Trading Co. Ltd with a registered capital of Rs.100000 issued 5000
equity shares of Rs.10 each payable Rs.2 on application, Rs.2 on allotment,
Rs.3 on first call and Rs.3 on final call. Pass journal entries assuming the
shares issued were fully subscribed and the money has been received.
2.
P
Ltd issued a prospectus inviting applications for 100000 equity shares of Rs.10
each, payable as Rs.2 with application, Rs.3 on allotment and the balance on
first and final call. Applications were received for 80000 shares. The call was
also made in due course of time. All the money were duly received. Journalize
the transactions including cash transactions.
3.
On
1st march 2001 Alpha Co. Ltd issued 25000 10% preference shares of
Rs.25 each payable as Rs.4 with application, Rs.6 with allotment and balance in
two equal calls of Rs.7.50 each. Applications were received 51000 shares. The
Board of Directors rejected applications for 1000 shares and allotted shares on
the remaining applications on prorate basis on 1st April 2001. First
call was made three months after allotment where as second call was made four
months after first call. In each case 14 days notice was served. All the money
was duly received. Pass journal entries.
4.
Sunshine
Ltd makes an issue of 100000 equity shares of Rs.10 each payable Rs.3 on
application, Rs.5 on allotment and Rs.2 on first and final call. Applications
were received for 250000 shares. The directors returned the application money
on 24000 shares and the excess application money received from the remaining
applicants was carried forward in part satisfaction on the accounts due on
allotment on the shares allotted to them. The company did not make first and
final call. Show journal entries.
5.
A
Ltd issued a prospectus inviting application for 100000 equity shares of Rs.10
each payable as to Rs.2 with application, Rs.3 on allotment and balance at the
discretion of directors. The number of applications amounted to 120000 shares.
The allotment was made as follows;
To applicants of 80000 shares - full allotment
To applicants of 30000 shares - 20000 shares
To applicants of 10000 shares -
nil
Give journal entries assuming the entire sum due on allotment has been
received and no call has been made.
6.
Beta
Ltd. having a nominal capital of Rs.2000000 in shares payable as follows:
On application Rs.25
On allotment Rs.25
On first call Rs.20
On final call Rs.20
The company received applications for 9000 shares. All the applications
were accepted. All money due are received with the exception of final call in
200 shares, later these shares were forfeited and reissued as fully paid at
Rs.90 per shares. Give journal entries.
7.
The
Directors of ABC Ltd. resolved on 1st May 2002 that 2000 ordinary
shares of Rs.10 each, Rs.7.50 paid, be forfeited for nonpayment of final call
of Rs.2.50. On June 10, 2002 1800 of the above shares were reissued for Rs.6
per share. Show journal entries required to give effect to the above
transactions.
8.
A
Ltd, had its issued share capital comprising 20000 equity shares of Rs.10 each
payable as Rs.2 on application, Rs.3 on allotment (including premium) Rs.3 on
first call and Rs.3 on final call. The shares were called up to first call. All
the money was received except from A holding 300 shares, who paid only up to
application and except from B holding 100 shares who paid up to allotment. All
these shares are forfeited. All these shares were reissued to C on payment of
Rs.6 per share and as paid up to the same extent as other shares. Pass journal
entries for forfeiture and reissue of shares.
9.
X
Ltd issued 10000 equity shares of Rs.10 each payable as under;
Rs.2 on application
Rs.5 on allotment
Rs.3 on first and final call
The public applied for 8000 shares which were allotted. All the money due
on shares was received except the first and final call on 100 shares. These
shares were forfeited and reissued at Rs.8 per share. Show the journal entries
in the books of the company.
10.
Give
journal entries for the above forfeiture and reissue of shares.
a) X Ltd
forfeited 30 shares of Rs.10 each fully called up, held by Karim for nonpayment
of allotment money of Rs.3 per share and final call of Rs.4 per share. He had
paid the application of Rs.3 per share. These shares were reissued to Salim for
Rs.8 per share.
b) X Ltd
forfeited 10 shares of Rs.10 each (Rs.6 called up) issued at a discount of 10%
to Neeta on which she had paid Rs.2 per share. Out of these, 8 shares were
reissued as Rs 8 called up for Rs.6 per share.
11.
A
company issue 10000 shares of face value Rs.10 each payable Rs.3 on
application, Rs.3 on allotment, Rs.2 on first call and Rs.2 on final call. All
cash is duly received, except the final call on 200 shares. These are
subsequently forfeited and later on issued as fully paid at Rs.7 per share.
Pass journal entries.
12.
A
Ltd issued 10000 shares of Rs.100 each at a premium of 5% payable as follows;
On application Rs.25, on allotment Rs.45 (including premium) on final
call Rs.35. The applications were received for 9000 shares and all of these
shares were accepted. All money due were received except final call on 100
shares, which were forfeited. Of these 50 shares were reissued at Rs.90 as
fully paid. Draft journal entries.
13.
A
Ltd forfeited 100 shares of Rs.10 each issued at a premium of Re.1 per share to
Hameed who had applied for 150 shares for nonpayment of allotment money of Rs.4
per share (including premium) and the first and final call of Rs.5 per share.
Out of these 60 shares were re issued to Sasi credited as fully paid for Rs.8
per share. Give journal entries relating to forfeiture and re issue of shares.
14.
A
company forfeits 100 shares of Rs.10 each, originally issued at a premium of
Rs.2 per share. The shareholder paid Rs.4 per share on application did not pay
the allotment money of Rs.4 per share (including premium) and call money of
Rs.4 per share. The company takes credit for the premium as soon as it becomes
due. The shares were subsequently re issued at Rs.11 per share fully paid up.
Pass journal entries.
15.
300
shares of Rs.10 each fully called up were forfeited by Bharat Ltd. for
nonpayment of first call of Rs.3 and final call of Rs.4 per share. Of these 100
shares were reissued at Rs.8 per share and 80 shares at Rs.8.50 per share. Show
journal entries for forfeiture and issue.
16.
A
company offers to its equity shareholders the right to buy one equity share of
Rs.100 each at Rs.120 for every four equity shares of Rs.100 each held. The
market value of one equity share is Rs.180. Calculate the value of right.
17.
A
Ltd has a share capital of 5000 equity shares of Rs.100 each having market
value of Rs.150 per share. The company wants to raise additional funds of
Rs.120000 and offers to
equity shareholders the right to apply for new shares at Rs.120 for every 5
shares held. You are required to calculate value of right.
18.
100
shares of Rs.100 each issued at 5% discount are forfeited by a company for
non-payment of allotment money of Rs.20 per share. All these shares were
reissued at Rs.80 per share. Give journal entries for forfeiture and reissue of
shares.
19.
Bhim
Sen Ltd. issued 60000 equity shares of Rs.20 each at a discount of 5% and 9000
10% preference shares of Rs.100 each at 3% discount. The amounts payable in
respect of the shares were as under:
Equity shares
– Rs.10 on application, Rs.5 on allotment, and the balance on a call to be made
in 3 months time,
Preference
shares - Rs.60 on application, Rs.25 on a call to be made in 3 months time, the
balance due is payable at the time of allotment.
All moneys
were duly received. Journalize the transactions (excluding calls) in the
company’s books.
20.
The
following particulars are given from the books and records of Standard Products
Ltd. relating to issue and forfeiture of equity shares during January to April
2006.
The amount per
share was payable as under:
Rs.3 on
application, Rs.5 on allotment (including Rs.2 as premium) Rs.4 on first and
final call.
No.
of shares No. of
Shares
allotted for applied for
Category
I 20000 30000
Category
II 10000 10000
Category
III NIL 5000
Allotment
were made prorate to category I
Mr. Giri who applied for 450 shares
in category I failed to pay allotment and call money and his shares were
forfeited by the Directors. Subsequently, 200 forfeited shares were reissued to
Mr. Puri as fully paid for Rs.9 per share.
Show journal
entries to record the above transactions.
21.
Dhananjay
Ltd. had issued 50000 equity shares of Rs.50 each at par, payable as Rs.25 on
application, Rs.10 on allotment, Rs.10 on first call and Rs.5 on second and
final call. Applications were received for all the shares and the company made
the allotment to all applicants and also made allthe calls. The company
received all the amounts except;
a.
First
call on 1200 shares.
b.
Second
call on 2000 shares (including the above 1200 shares)
Having passed
the necessary resolution, the company forfeited the above shares. All the
forfeited shares were reissued at Rs.12 per share. Pass journal entries.
22.
A
Ltd Co issued a prospectus inviting
applications for 2000 shares of Rs.10 each at a premium Rs.2 per share payable
as follows;
On application Rs.2
On allotment Rs.5 (including premium)
On first call Rs.3
On second call Rs.2
Applications were received for 3000 shares and allotment made pro rata to
the applicants of 2400 shares. Money over paid on application was employed on
account of sum due on allotment.
Kumar, to whom 40 shares were allotted, failed to pay the allotment money
and on his subsequent failure to pay the first call, his shares were forfeited.
Raja, the holder of 60 shares, failed to pay the two calls, and his shares were
forfeited after the second call. Of these shares forfeited 80 shares were sold
to Albert credited as fully paid for Rs.9 per share, the whole of Kumar’s
shares being included.
Show journal, cash book and the
balance sheet.
23.
Madan
and Co. Ltd issued 12000 equity shares of Rs.10 each at a premium of Rs.2 per
share payable as follows;
On application Rs.2
per share
On allotment (including premium) Rs.5 per share
On first call Rs.5
per share
Applications were received for 20000 shares. 5000 applications were
rejected and application money refunded. Allotment was made pro rata to the
applicants of 15000 shares and money over paid on application was applied
towards amount due on allotment.
Jain to whom 1200 shares were allotted failed to pay the allotment and
first call money. His shares were forfeited. Give entries in the books of the
company.
24.
M/s
Blue Chips Ltd. issued 5000 equity shares of Rs.100 each at a premium of Rs.25
per share. On 1st January 2000, the company received 12000
applications on which 2000 applications were totally rejected and their amount
was refunded on 1st February 2000 when the remaining applicants were
allotted shares on pro rata basis. The amount of shares received is as under:
On application
Rs.30, on allotment Rs.45 (including premium), on first call Rs.25 and on
second call Rs.25.
Allotment
money was received in full on 15th February.
First call was
made on 15th May, 2000 and received on 1st June 2000
except on 25 shares held by Mr. Govind. His shares were forfeited on 1st
October 2000 and reissued on 15th October2000 credited at Rs.75 paid
for Rs.110 per share to Mr. Anand. Final call was made on 1st
November and received on 15th November except on 100 shares held by Mr.
Binu.
Pass journal
entries.
