D. K. Goel solutions for Accountancy Volume 1 and 2 [English] Class 12 ISC chapter 6 - Company Accounts - Issue of Shares [Latest edition]

Issued Capital will be ______.

Subscribed Capital will be ______.

Subscribed and Fully Paid Capital will be ______.

Subscribed but not Fully Paid Capital will be ______.

Balance of Securities Premium Reserve shown in Balance Sheet will be ______.

Share Forfeiture Account will be Credited by ______.

Securities Premium Reserve Account will be debited by ______.

Calls in Arrears Account will be credited by ______.

Liability of a shareholder is limited to ______ of the shares allotted to him.

In the entry for forfeiture of shares, Share Capital Account will be debited with ______.

Securities Premium Reserve A/c will be debited by ______

Share Forfeiture A/c will be credited by ______.

Which of the following is not a Capital profit:

Amount transferred to capital reserve will be ______.

Balance of Share Forfeiture Account will be ______.

Subscribed and Fully Paid Capital will be ______.

Subscribed but not Fully Paid Capital will be ______.

Securities Premium cannot be utilized for ______.

Calls in Arrears Account will be Credited by ______.

Securities Premium Reserve A/c will be debited by ______.

Share Forfeiture A/c will be credited by ______.

Share Capital Account will be debited by ______.

The issued capital of the company to be shown in Notes to Accounts as at 31st March, 2021, under “Share Capital” will be ______.

The subscribed shares of the company at the end of the year 2020-21 will be ______.

The amount of Share Capital to be shown in the Balance Sheet of the company as at 31st March, 2021, will be ______.

The net gain made by the company on reissue of the 800 shares will be transferred to ______.

Calls in Arrears will be ______.

Subscribed and Fully Paid Capital will be ______.

Subscribed but not Fully Paid Capital will be ______.

In the Balance Sheet of a company, under the heading share capital, at the last is shown ______.

For what purpose securities premium account Cannot be utilized?

Based on the above information, you are required to answer the following question:

Amount received in cash on allotment will be ______.

Based on the above information, you are required to answer the following question:

In the entry of forfeiture of Raghu's shares, amount credited to Share Forfeiture Account will be ______.

Based on the above information, you are required to answer the following question:

Amount credited to Capital Reserve Account will be ______.

Based on the above information, you are required to answer the following question:

Balance in Reserve and Surplus Account will be ______.

Based on the above information, you are required to answer the following question:

Subscribed and Fully-paid capital will be ______.

On the basis of above information, you are required to answer the following question:

Calls in Arrears amount will be ______.

On the basis of above information, you are required to answer the following question:

Amount transferred to Capital Reserve will be ______.

On the basis of above information, you are required to answer the following question:

Balance in Securities Premium Reserve Account will be ______.

On the basis of above information, you are required to answer the following question:

Balance in Reserve and Surplus Account will be ______.

On the basis of above information, you are required to answer the following question:

Subscribed and Fully Paid Capital will be ______.

Based on above information, you are required to answer the following question:

Amount received on allotment in Cash will be ______.

Based on above information, you are required to answer the following question:

In the entry of forfeiture of Sahaj's shares, amount Credited to Share Forfeiture A/c will be ______.

Based on above information, you are required to answer the following question:

After the reissue of forfeited shares, amount transferred to Capital Reserve will be ______.

Based on above information, you are required to answer the following question:

Subscribed and fully paid capital will be ______.

You are requied to answer the following question:

Amount received in Cash on allotment will be ______.

You are requied to answer the following question:

In the entry on forfeiture of Agam,s shares, amount credited to Share Forfeiture Account will be ______.

You are requied to answer the following question:

After the reissue of forfeited shares, amount credited to Capital Reserve will be ______.

You are requied to answer the following question:

Balance in Reserve and Surplus Account will be ______.

You are requied to answer the following question:

In the Balance sheet, Share Forfeiture A/c will be shown under the sub-head ______.

What is meant by Limited liability?

What are two important documents which are required to be filed for registration of a joint stock company?

Name any two statutary books maintained by the company under Companies Act.

Answer in one sentence.

What are cumulative preference shares?

Answer in one Sentence only:

What is meant by convertible preference share?

Distinguish Between Equity Shares and Preference Shares.

Define ‘Share Capital’ of a company.

What is meant by ‘Issued Capital’?

What is meant by ‘Subscribed Capital’?

Distinguish between Authorised Capital and Issued Capital.

Distinguish between nominal capital and paid up capital.

Give any two differences between Reserve Capital and Capital Reserve.

Show the Share Capital in Company's balance sheet with imaginary figures.

Atleast how much portion of the nominal amount of a share must be called as application money?

Explain the following term/concept.

Minimum subscription

What is the maximum amount of a Call according to Table ‘F’ of Schedule I?

What is the minimum time interval between two consecutive calls according to Table ‘F’ of Schedule I?

3,000 shares of ₹10 each were issued to the Promoters for their services at a premium of ₹5 per share. Give Journal entry.

Apart from issuing shares to the general public for cash, list two other groups to whom a company could issue shares for consideration other than cash.

What is meant by public issue of shares?

State any two uses of Securities Premium as stated in Section 52 of the Companies Act, 2013.

Can securities premium be utilised for the purchase of fixed assets? Give reason.

Why is ‘securities premium on issue’ treated as a capital profit in a joint stock company?

When are the shares issued at a premium?

Can securities premium be freely distributed as dividend?

State the provisions of Companies Act 2013 for the issue of shares at a premium.

Answer in one sentence only.

What is Calls-in-Arrears?

What is meant by calls in advance?

What is the rate of interest which can be allowed on Calls-in advance?

What is the rate of interest which can be charged on Calls-in arrears?

How are Calls-in arrear shown in the Balance Sheet?

How are Calls-in advance shown in the Balance Sheet?

What a Company will do when there is over-subscription of shares?

What a Company will do when there is under-subscription of shares?

Answer in one sentence only.

What is Forfeiture of Shares?

When the shares of a company can be forfeited?

How the shares of a company can be forfeited?

Can fully paid up shares be forfeited? If so, under what circumstances?

Can forfeited shares be re-issued at a discount? If so, to what extent? Where would you transfer the balance left in the share forfeited account after the re-issue of such shares?

What are the conditions on which forfeited shares can be re-issued?

What is the minimum price at which the forfeited shares can be re-issued?

What are the different ways in which the forfeited shares account can be used?

Give four examples of capital profits.

What is the main purpose for which a company normally uses its profits?

State any two purposes for which the securities premium can be utilised?

State two effects of forfeiture of shares.

Give any two points of difference (without examples) between tangible and intangible fixed assets.

What are quoted investments?

Distinguish between General Reserve and Reserve Fund.

What are contingent liabilities?

How are contingent liabilities shown in the Balance Sheet of a Company prepared as per Schedule III of the Companies Act 2013?

Give two examples of Contingent Liabilities.

What is meant by ‘Current Maturities of Long Term Debt’?

How is ‘Current Maturities of Long Term Debt’ disclosed in the Balance sheet of a company?

State, with reason, whether securities premium can be used to write off bad debts.

State where will the non-cash transactions be recorded at the time of issue of shares, if all cash transactions are entered in the Cash Book.

Shiv, the holder of 100 shares paid his first call of ₹4 per share on 1st May, 2023, along with his allotment money. First Call is due on 1st September, 2023.

Interest is allowed by the company on calls-in-advance as per the provisions of Table F of the Companies Act, 2013.

You are required to give the adjusting entry and closing entry for interest on calls-in-advance.

Savi Ltd. forfeited 50 shares of ₹100 each issued at a premium of 10%, on which allotment money of ₹30 per share (including premium) and first and final call of ₹40 per share were not received.

What is the minimum amount per share at which the company can reissue these shares?

Equity shareholders are ______ of the Company.

Preference shareholders are ______ of the Company.

Premium received on the issue of shares is shown on the ______ side of the Balance Sheet.

The liability of every shareholder of a Company is ______.

Share Application is a ______ account.

Minimum Share Application money is ______% of the nominal value of shares.

There must be an interval of atleast ______ month between the making of the two calls.

According to Table ‘F’ of Schedule I interest on calls in advance may be paid at a rate not exceeding ______% p.a.

Shareholders get ______.

Vikas Ltd. has an authorised capital of ₹40,00,000 divided into 4,00,000 Equity Shares of ₹10 each. Out of these, the company invited applications for 3,00,000 equity shares.
The public applied for 2,80,000 shares and all the money was duly received.
Show how Share Capital will appear in the Balance Sheet of the Company. Also prepare notes to accounts.

‘Tractors India Ltd.’ is registered with an authorised capital of ₹10,00,000 divided into 1,00,000 equity shares of ₹10 each. The company issued 50,000 equity shares at a premium of ₹5 per share. ₹2 per share were payable with application, ₹8 per share including premium on allotment and the balance amount on first and final call. The issue was fully subscribed and all the amount due was received except the first and final call money on 500 shares allotted to Balram.
Present the ‘Share Capital’ in the Balance Sheet of ‘Tractors India Ltd.’ as per Schedule III Part I of the Companies Act, 2013, Also prepare Notes to Accounts for the same.

Ashirwad Ltd. was formed on 1st December, 2023, with a capital of ₹20,00,000 divided into shares of no each. It offered 80% of the shares to the public.
The issue price was payable as follows:
30% of the face value per share was payable with application.
20% of the face value per share was payable with allotment.
The balance as and when required. The company did not call for the balance during the year.
All the shares offered by the company were subscribed for. Company received ₹3,14,000 on allotment.
You are required to:

1. Show the Share Capital in the Balance Sheet of the Company (prepared as per Schedule III of the Companies Act, 2013) at the end of the financial year.
2. Prepare Notes to Accounts.

Klen Ltd. was registered with an authorized capital of ₹10,00,000 divided into Equity Shares of no. Out of these, 8,000 shares were issued to vendors as fully paid as purchase consideration for a business acquired. The company offered 20,000 shares for public subscription and called up ₹8 per share and received the entire called up amount.
You are required to prepare the Balance Sheet of the company as per Schedule III of Companies Act, 2013, showing Share Capital balance and also prepare Notes to Accounts.

Rama Co. issued 50,000 shares of ₹10 each payable as follows:

• ₹3 on Application
• ₹3 on Allotment
• ₹2 on First Call
• ₹2 on Final Call

All the shares were subscribed and allotted. Give Journal entries and show how the Share Capital will appear in the Balance Sheet assuming that all sums have been duly received. Expenses on issue of shares amounted to ₹10,000.

Z Ltd. was registered with an authorised capital of ₹60,00,000 divided in 60,000 equity shares of ₹100 each. Company issued 25,000 equity shares at a premium of ₹20 per share, payable as follows: ₹30 on Application; ₹45 on Allotment (including premium); ₹20 on first call and ₹25 on Second and Final Call.
All shares were subscribed and all the money was duly received. Share issue expenses amounted to ₹40,000 which were fully written off against Securities Premium.
Prepare necessary Journal Entries, Bank Account and Opening Balance Sheet.

Kanpur Gas Ltd. issued 40,000 equity shares of ₹10 each at a premium of ₹1 per share. Amounts were payable as follows:
₹2.50 on Application; ₹4.50 on Allotment (including premium); ₹2 on First Call and ₹2 on Final Call.
Applications were received for 37,000 shares.
Give Journal Entries and Balance Sheet, assuming that all sums have been received on due dates.

Bhawna Ltd. was registered with a nominal capital ₹1,00,000 divided into shares of ₹10 each. The company purchased assets for ₹27,000 from Bhatia-Singhal. The company issued fully paid equity shares of no each in satisfaction of the claim. Shares of ₹10,000 were issued at par to the promoters for their services.
Give journal entries of the above transactions if Bhatia-Singhal were issued shares at (i) par; and (ii) 20% premium.

Pass journal entries for the following:

X Ltd. purchased Land and Building from R. Sundram for ₹5,00,000 payable in fully paid shares of ₹100 each at a premium of 25%.

Pass journal entries for the following:

Y Ltd. decided to issue 2,000 shares of ₹100 each to the Unit Trust of India as Underwriting Commission.

Tagore Ltd. purchased a running business from Tulsi Bros. for a sum of ₹60,00,000 payable by the issue of fully paid equity shares of ₹20 each at a premium of 50%. The assets and liabilities consisted of the following:

Pass the necessary journal entries in the books of Tagore Ltd.

Madhur Ltd. took over the assets of ₹5,00,000 and Liabilities of ₹40,000 of Rasova Ltd. for a consideration of ₹4,00,000. 20% was paid by a cheque and the balance by issue of fully paid equity shares of ₹100 each at a premium of 60%. Show necessary journal entries for these transactions in the books of Madhur Ltd.

X Ltd. issued 20,000, 7% Preference shares of ₹100 each at a premium of 6%. Payments were to be made as - ₹25 on Application; ₹46 on Allotment, ₹10 on First call and ₹25 on Final Call.
The applications for 18,000 shares were received and all were accepted. All the money was duly received except the first and final call on 100 shares.
Give the necessary Journal Entries and prepare Cash Book of the Company. Also give the Opening Balance Sheet of the Company.

Vishal Ltd. issued 50,000 Equity Shares of ₹10 each payable as follows:

All the shares were subscribed except the following:

1. Shareholder Suresh, holding 1,000 shares did not pay the first call and final call.
2. Shareholder Vasudev, holding 2,000 shares did not pay the final call.

These amounts were due till the date of Balance Sheet on 31st March, 2024. Articles of Association of the Company provided for charging interest on calls in arrears @ 10% p.a.

Pass necessary journal entries and show Share Capital in the Balance Sheet of the company.

Aman Ltd., issued 40,000 shares of ₹10 each to the public and received the amount as:
On 1.3.2023 with application ₹2.50; on allotment ₹2.50 on 1.7.2023; on first call ₹3 on 1.12.2023 and the balance amount on final call on 1.3.2024. Ramesh, who had 500 shares, paid the amount of first and final call with allotment and Mohan, who had 100 shares paid the amount of final call with first call. According to Articles of Association interest on call in advance is to be paid @12% p.a. The interest was paid on 1.3.2024. Give Journal entries in the books of the Company assuming that books are closed on 31st March every year.

Chandra Ltd. issued 40,000 equity shares of ₹10 each at par payable as to:
₹2.50 on application; ₹2.00 on allotment; ₹2.50 on first call and ₹3.00 on final call (Three months after First Call).
All the shares were allotted and amount received except Mohan holding 800 shares paid the final call money alongwith first call and Naresh holding 300 shares did not pay the first call money in time.
Final call was made. All the shareholders paid in full. First call arrear on 300 shares alongwith interest on calls in arrears were also received at the time of final call. The company paid interest on calls in advance and charged interest on calls in arrears according to the provisions of Table F of schedule I of Companies Act, 2013.
Make entries in the company's journal for transactions relating to first call and final call.

A limited Company was registered with a capital of ₹5,00,000 in shares of ₹10 each and issued 20,000 such shares at a premium of ₹2 per share, payable as ₹3 per share on application, ₹4 per share on allotment (including premium) and ₹2 per share on first call made three months later. All the money payable on application and allotment were duly received but when the first call was made, one shareholder paid the entire balance on his holdings of 300 shares, and another shareholder holding 1,000 shares failed to pay the first call money.
Give Journal entries to record the above transactions and show how they will appear in the company's Balance Sheet.

Saraswati Ltd. has an authorised capital of ₹10,00,000 divided into equity shares of ₹10 each. Subscribed and fully paid-up share capital of the company was ₹4,00,000. To meet its new financial requirements, the company issued 20,000 equity shares of ₹10 each which were payable as follows: ₹3 on application; ₹3 on allotment, ₹2 on first call and ₹2 on second and final call. The issue was fully subscribed. The allotment money was payable on 1^st May 2021, first call money on 1^st August 2021 and final call on 1^st October 2021. X whom 1,000 shares were allotted, did not pay the allotment and call money; Y an allottee of 600 shares, did not pay the two calls; and Z whom 400 shares were allotted, did not pay the final call. Present the share capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013. Also prepare Notes to Accounts for the same.

Jupiter Ltd. issued 50,000 shares of ₹10 each payable as follows:

Applications were received for 1,00,000 shares and the allotments were made as under:

Excess money received on application was utilised towards allotment and subsequent calls. Interest on Calls in advance was paid @12% p.a.

Give journal entries, assuming all sums due were received and the company closes its books on 31^st March every year.

On October 1, 2023, XLtd. offered 1,00,000 shares of ₹10 each payable as follows:

Applications were received for 1,25,000 shares on October 15, 2023. Applications for 1,20,000 shares were allotted 1,00,000 shares and the remaining applications were rejected.
Give journal entries assuming that all amounts have been received and the company maintains a combined account of application and allotment.

X Ltd. was registered with an authorised capital of 2,00,000 shares of ₹10 each. It purchased assets of Y Ltd. for ₹3,00,000 and issued fully paid shares for purchase consideration. It also invited applications for 1,20,000 shares payable as under:

• ₹2.50 on application
• ₹2.50 on allotment
• ₹2 on first call and ₹3 on final call.

Amount due on Allotment and First Call was duly received. However, ₹3,58,800 were received on final call. Directors forfeited the shares of defaulting shareholders and reissued them at ₹8.50 per share as fully paid up. Pass entries in the Cash Book and Journal. Also prepare the opening Balance Sheet of the Company.

Alfa Ltd. issued 5,000 shares of ₹100 each at par. The amount payable was as under:

₹ 25 on application;
₹ 25 on allotment;
₹ 20 on first call; and
₹ 30 on final call.

The company did not make final call. X, a holder of 100 shares, failed to pay allotment and first call money. Directors forfeited his shares and immediately re-issued the forfeited shares at ₹ 6,500.

Pass Journal entries in the books of the company and prepare the Opening Balance Sheet.

Dinesh Ltd. issued 5,000 shares of ₹100 each at par, payable as follows:

Anil, holding 100 shares failed to pay the amount of allotment and first call and his shares were forfeited after the first call.
Sunil, holding 200 shares failed to pay the amount due on final call and his shares were also forfeited.
Show entries in the Cash Book and Journal of the Company and also prepare the Balance Sheet.

Fast Food Ltd. issued a prospectus offering 10,000 equity shares of ₹50 each at par payable as follows:

Ram, the holder of 500 equity shares did not pay the amount due on both the calls. These 500 shares were forfeited by the Board of Directors and 300 of these shares were subsequently re-issued at ₹55 per share.
Show the entries in the Cash Book and Journal of the Company. Also prepare the Opening Balance Sheet.

On 1st April, 2023 Kanishk Ltd. made an issue of 4,000 Equity shares of ₹100 each, payable as follows:

Applications were received for 10,000 shares and pro-rata allotment was made to all the applicants.

Excess money received on application was utilised towards allotment and subsequent calls. One shareholder who had applied for 500 shares did not pay the final call and his shares were forfeited. Of the forfeited shares, the company reissued 150 shares as fully paid up at ₹ 90 per share.

You are required to pass journal entries in the books of the company for the year ending 31st March, 2024.

Nilgiri Tea Ltd. invited applications from the public for the issue of 1,00,000 Equity shares of ₹20 each payable as:
₹5 on Application 
₹7 on Allotment
Balance on Call
The public applied for 90,000 shares which were duly allotted by the company.
₹6,27,200 were received by the company on allotment and ₹7,12,800 on call.
The company forfeited those shares on which both, allotment and call money was not received.
Three-fourth of the forfeited shares were reissued as fully paid up at the maximum discount allowed by law.
The company paid share issue expenses of ₹50,000 which were completely written off at the end of the year.
The company had ₹60,000 in its Securities Premium Account.
You are required to prepare Cash Book and pass Journal Entries to record the above transactions in the books of the company.

W Ltd. issued 10,000 shares of ₹100 each. During the year only ₹80 were called payable as follows:

Amounts were received as follows:

On 8,000 shares the full amount called
On 1,200 shares ₹65 per share
On 500 shares ₹45 per share
On 300 shares ₹25 per share

The directors forfeited those shares on which less than ₹65 per share were received. Show entries in the Cash Book and Journal and prepare the Balance Sheet.

Girish Ltd. was registered with an authorised capital of ₹1,00,00,000 divided into equity shares of ₹20 each payable as follows:
₹5 on application
₹17 on allotment (including premium ₹10)
Balance on Call
The Company offered 2,00,000 shares for public subscription. Applications were received for 1,90,000 shares and allotment was duly made. All the money was called and received except the following:

1. Allotment and Call money on 8,000 shares held by Abha, and
2. Call money on 6,000 shares heid by Suchi.

Abha's shares were forfeited and out of these, 60% were reissued at ₹18 per share as fully paid.
Show Share Capital in the books of the company alongwith notes to accounts.

On 1st April, 2023, Blue Heaven Ltd. was formed with an authorised capital of ₹20,00,000 divided into 2,00,000 equity shares of ₹10 each. The company issued prospectus inviting applications for 1,50,000 equity shares. The company received applications for 1,40,000 equity shares. During the first year, ₹7 per share were called. Arun holding 4,000 shares and Varun holding 3,000 shares did not pay the first call of ₹2 per share. Varun's shares were forfeited after the first call and later on 1,800 of the forfeited shares were re-issued at ₹5 per share, ₹7 called up.

Show the following:

1. Share Capital in the Balance Sheet of the company as per Schedule III Pait I of the Companies Act, 2013.
2. Also prepare ‘Notes to Accounts’ for the same.

Star Ltd. was registered with an authorised Capital of ₹1,00,00,000 divided into 40,000 8% Preference Shares of ₹100 each and 3,00,000 Equity Shares of ₹20 each.
It issued a prospectus inviting application for 2,00,000 equity shares at a premium of ₹30 each, payable non application; ₹5 on allotment (including premium) and balance on Call. Public applied for 2,50,000 shares. Full allotment was made to applicants for 2,00,000 shares and excess application money was refunded.
Allotment was made and allotment money was duly received except on 2,000 shares held by Varsha, while another shareholder Kirpa holding 500 shares paid the Call money also on allotment.
Present the ‘Share Capital’ in the Balance Sheet of the company as per Schedule III of the Companies Act, 2013. Also prepare ‘Notes to Accounts’.

A, who holds 200 shares of ₹100 each, has paid only ₹25 per share as application money.
B, who holds 300 shares of ₹100 each, has paid ₹25 per share on application and ₹30 per share on allotment.
C, who holds 400 shares of ₹100 each, has paid ₹25 per share on application, no per share on allotment and ₹20 per share on first call.
They failed to pay their arrears and the final call. Their shares were forfeited and re-issued at ₹95 per share.

Prepare necessary journal entries.

Pass journal entries for the forfeiture and re-issue in the following case:

A Ltd. forfeited 1,000 shares of ₹10 each fully called-up for non-payment of first call of ₹3 per share and final call of ₹3 per share. All of these shares were re-issued as fully paid for ₹10 per share.

Pass journal entries for the forfeiture and re-issue in the following case:

B Ltd. forfeited 4,000 shares of ₹10 each fully called-up for non-payment of final call of ₹3 per share. 3,000 of these shares were re-issued as fully paid at the maximum rate of discount allowed by law.

Pass journal entries for the forfeiture and re-issue in the following case:

C Ltd. forfeited 7,000 shares of ₹10 each fully called-up on which the holder has paid application money @ ₹3 and allotment money @ ₹2 per share. Out of these, 3,000 shares were re-issued as fully paid @ ₹7 per share.

Pass journal entries for the forfeiture and re-issue in the following case:

D Ltd. forfeited 10,000 shares of ₹10 each fully called-up on which the holder has paid only the application money @ ₹3 per share. Out of these, 6,000 shares were re-issued at ₹10.50 per share, fully paid up.

Pass journal entries for the forfeiture and re-issue in the following case:

X Ltd. forfeited 700 shares of Ashok of ₹10 each ₹8 called-up, on which he had paid ₹5 per share. Out of these, 500 shares were re-issued for ₹9 per share as fully paid.

Pass journal entries for the forfeiture and re-issue in the following case:

Y Ltd. forfeited 400 shares of ₹10 each, ₹6 called-up, for non-payment of first call of ₹2 per share. Out of these, 300 shares were immediately re-issued at ₹5 per share.

Pass journal entries for the forfeiture and re-issue in the following case:

Z Ltd. forfeited 300 shares of ₹100 each on which first call of ₹20 per share was not received, the second and final call of ₹30 per share has not yet been called. Out of these, 200 shares were re-issued as ₹70 paid-up for ₹55 per share.

Journalise the following:

A Ltd. forfeited 1,000 shares of ₹10 each, ₹8 paid, for non-payment of final call of ₹2 per share. Out of these, 400 shares were re-issued as fully paid-up in such a way that ₹2,000 were transferred to capital reserve.

Journalise the following:

B Ltd. forfeited 1,000 shares of ₹10 each, ₹8 called-up, for non-payment of Allotment of ₹2.50 per share and first call of ₹3 per share. Out of these, 400 shares were re-issued for ₹7 per share as ₹8 paid-up.

Journalise the following:

C Ltd. forfeited 300 shares of ₹10 each on which on has been called and ₹5 has been paid. Out of these, 100 shares are re-issued for ₹6 per share as ₹7 paid-up.

X Ltd. issued a prospectus offering 2,00,000 shares of ₹10 each at ₹14 per share, payable as follows:

Dinesh, the holder of 1,000 shares, did not pay the amount due on allotment and first call. His shares were forfeited and 400 of these shares were immediately re-issued credited ₹9 paid for ₹8.40 per share.
Final call was made afterwards and it was duly received.
Show entries in the Cash Book and the Journal of the company. Also prepare the Opening Balance Sheet.

Vikram Ltd. issued 50,000 shares of ₹10 each at a premium of ₹1 per share payable as follows:

• ₹3 on Application
• ₹4 on Allotment (including premium)
• ₹2 on 1st Call
• Balance when required

Applications were received for 46,000 shares and all of these were accepted. Directors did not make the final call. A shareholder holding 800 shares did not pay the amount due on first call. The shares were forfeited and re-issued at ₹7 per share, ₹8 per share paid.
Pass Cash Book and Journal Entries.

Give journal entries for forfeiture and re-issue of shares:

X Ltd. forfeited 500 shares of ₹ 100 each, ₹ 75 called-up, issued at 10% premium (to be paid at the time of allotment) for non-payment of a first call of ₹ 20 per share. Out of these, 200 shares were re-issued as ₹ 75 paid-up for ₹ 60 per share.

Give journal entries for forfeiture and re-issue of shares:

X Ltd. forfeited 300 shares of ₹100 each, ₹75 called-up, issued at 10% premium (to be paid at the time of allotment) for non-payment of allotment money of ₹30 per share (including premium) and first call of ₹20 per share. Out of these, 100 shares were re-issued as fully paid-up in such a way that ₹3,100 were transferred to Capital Reserve.

Journalise the following:

Y Ltd. forfeited 400 shares of ₹100 each, issued at a premium of ₹5 per share (to be paid at the time of allotment) for non-payment of a first call of ₹20 per share. The second and final call of ₹20 has not yet been called. Out of these, 100 shares were re-issued on fully paid-up at the maximum rate of discount allowed by law.

Journalise the following:

Y Ltd. forfeited 700 shares of ₹100 each, issued at a premium of ₹5 per share for non-payment of allotment money of ₹35 per share (including premium) and first call of ₹20 per share. The second and final call of ₹20 has not yet been called. 500 of these shares were re-issued as ₹80 paid-up for ₹92 per share.

A company forfeited certain number of shares of face value ₹10 each for non-payment of final call money of ₹4. These shares were reissued at a discount of ₹5 and the amount of ₹4,500 was transferred to the capital reserve account. Pass the necessary journal entries to show the above transactions and prepare the Share forfeited account.

Om Solutions Ltd. forfeited 7,000 shares of ₹100 each issued at 20% premium for non-payment of allotment money of ₹55 (including premium). First and final call of ₹25 was not made. Out of these, 6,000 shares have been re-issued at ₹... per share as ₹75 paid up. An amount of ₹1,50,000 has been transferred to Capital Reserve.
Pass necessary entries to show the above transactions.

A Co. Ltd. offered to the public 20,000 equity shares of ₹100 each at a premium of ₹10 per share. The payment was to be as follows:

Applications were received for 35,000 shares. Applications for 10,000 shares were rejected. Applicants for 15,000 shares were allotted 10,000 shares and remaining applications were accepted in full. The Directors made both the calls. One shareholder holding 500 shares failed to pay the two calls and as a consequence his shares were forfeited. 200 of these shares were re-issued as fully paid at ₹80 per share.
Expenses of issue came to ₹10,000.

Prepare Cash Book, the Journal and the Balance Sheet on the basis of information given above.

Elite Ltd. invited applications from public for 5,00,000 equity shares of ₹10 each issued at ₹11 per share. The payment was to be made as follows: ₹3 on Application; ₹4 on Allotment including premium, and ₹4 on call.
Applications for 6,50,000 shares were received. Allotment of shares was made as follows:

1. 100% shares to applicants of 4,00,000 shares;
2. 50% shares to applicants of 2,00,000 shares,
3. No allotment to applicants of 50,000 shares.

A shareholder to whom 500 shares were allotted under category (i) paid the full amount due on shares along with the allotment money. Another shareholder holding 1,000 shares failed to pay the amount due on call. His shares were forfeited, and 800 of these shares were subsequently re-issued as fully paid-up @ ₹8 per share. Pass the journal entries and give Balance Sheet of the company.

AXN Ltd. invited applications for issuing 1,00,000 equity shares of ₹10 each at a premium of ₹6 per share. The amount was payable as follows:

The issue was fully subscribed.
Kumar, the holder of 400 shaes did not pay the allotment money and Ravi the holder of 1,000 shares paid his entire share money alongwith allotment money. Kumar's shares were forfeited immediately after allotment. Afterwards first call was made. Gupta, a holder of 300 shares failed to pay the first call money and Gopal a holder of 600 shares paid the second call money also alongwith first call. Gupta's shares were forfeited immediately after the first call. Second and final call was made afterwards. The whole amount due on second call was received.
All the forfeited shares were re-issued at ₹9 per share fully paid up.
Pass necessary Journal Entries for the above transactions in the books of the company.

Journalise the following transactions in the books of Poonam Ltd.:

200 shares of ₹10 each issued at a premium of ₹5 each payable with allotment were forfeited for the non payment of allotment money of ₹8 per share including premium. The first and final call on these shares at ₹3 per share was not made. The forfeited shares were re-issued @ ₹12 per share fully paid up.

Tej Ltd. issued Equity shares of ₹10 each payable as:
₹3 on Application; ₹2 on Allotment; ₹5 on First & Final Call.
Extract of the Journal of Tej Ltd. is as follows:

You are required to complete the journal entries by filling up the missing information represented by ‘??’.

Vaibhav Ltd. issued 20,000 equity shares of ₹100 each at ₹250 payable as follows:

All amounts were received except first and second & final call on 750 shares held by Mr. Akash. His shares were forfeited and 2/3rd of these shares were reissued to Mr. Dinesh at ₹200 per share. Pass entries for forfeiture and reissue.

X Ltd. offered 25,000 shares of ₹ 100 each payable as ₹ 25 on application, ₹ 20 on allotment, ₹ 30 on first call and the balance on final call. Applications were received for 40,000 shares out of which shares were allotted to the applicants for 35,000 shares on a pro-rata basis. All shareholders paid the allotment money excepting Mr. Gopal who was allotted 500 shares. These shares were forfeited immediately. The first call was made thereafter. The forfeited shares were re-issued @ ₹ 78 per share ₹ 75 paid up. The final call was not made. Pass necessary journal entries.

Jay Ltd. issued a prospectus inviting applications for 1,00,000 shares of ₹10 each. These shares were issued at par on the following terms:
On application ₹2.50, on allotment ₹2.50, on first call ₹3 and on final call the balance.
Applications were received for 1,35,000 shares. Allotments were made on the following basis:

1. To applicants for 25,000 shares - in full;
2. To applicants for 60,000 shares - 45,000 shares
3. To applicants for 50,000 shares - 30,000 shares

All excess amount paid on application is to be adjusted against amount due on allotment.
The shares were fully called and paid-up except the amount of allotment, first and final call not paid by those who applied for 4,000 shares of the group applying for 50,000 shares.
All the shares on which calls were not paid were forfeited by the Board of Directors. 1,800 forfeited shares were re-issued as fully paid on receipt of ₹9 per share.
Prepare Cash Book and Journal entries to record the above.

A company issued 10,000 shares of ₹10 each at a premium of ₹1 per share, payment to be made as follows:

Applications were received for 20,000 shares. Applications for 5,000 shares were rejected and allotment was made proportionately to the remaining applicants. The directors made both the calls and all the money were received, except the allotment, first call and final call on 400 shares, which were subsequently forfeited. Later, 300 of the forfeited shares were re-issued as fully paid @ ₹15 per share. Give journal entries to record the above. Also prepare the Balance Sheet.

A company issued for public subscription 60,000 equity shares of ₹10 each at a premium of ₹4 per share, payable as under: ₹4 on Application; ₹5 on Allotment (including premium), ₹2.50 on First Call and ₹2.50 on Final Call.
Applications were received for 75,000 equity shares. The shares were allotted pro-rata to the applicants for 70,000 shares, the remaining applications being rejected. Money over-paid on applications was utilised towards sums due on allotment.
A, to whom 1,200 shares were allotted failed to pay allotment and calls money and B, to whom 1,800 shares were allotted failed to pay two calls. These shares were subsequently forfeited after the final call was made. All the forfeited shares were sold to Rajesh as fully paid-up at ₹11 per share.
Prepare Cash Book and journal entries required to record the above transactions.

Suzuki Limited issued a prospectus inviting applications for 60,000 shares of ₹10 each at a premium of 30% payable as follows: On Application ₹3.50; On Allotment ₹5.50 (including premium): On First Call ₹2 and on Second Call ₹2.
Applications were received for 95,000 shares and allotment was made pro-rata to applicants of 80,000 shares. Money over-paid on applications were employed on account of sums due on allotment.
X, to whom 1,500 shares were allotted failed to pay the allotment money and on his subsequent failure to pay the First Call his shares were forfeited. Y, the holder of 2,400 shares failed to pay the two calls and his shares were forfeited after the Second Call. Of the shares forfeited, 3,000 shares were sold to Z as fully paid, Z paying ₹8.50 per share, the whole of Y's share being included.
Give journal entries, prepare Bank Account and Balance Sheet.

A company issued for public subscription 40,000 equity shares of ₹10 each at a premium of ₹2 per share payable as under:

Applications were received for 70,000 shares. Allotment was made pro-rata to the applicants for 50,000 shares, the remaining applications being refused. Money overpaid on application was applied towards sum due on allotment. A, to whom 1,600 shares were allotted failed to pay the allotment and calls money. B, to whom 2,000 shares were allotted failed to pay the two calls. The shares of A and B were subsequently forfeited after the second call was made. 3,000 of the forfeited shares were re-issued at ₹8 per share fully paid. The re-issued shares included all of A's shares.
Pass journal entries in the books of the company to record the above transactions.

Hindustan Steel Ltd. invited applications for 50,000 equity shares of ₹10 each at a premium of ₹4 per share. The amount was payable as follows:

Applications for 60,000 shares were received. Allotment was made to all the applicants on pro-rata basis. Excess application money was adjusted towards sums due on allotment. Ram, to whom 500 shares were allotted, failed to pay allotment and call money. Shyam, to whom 1,000 shares were allotted, failed to pay the call money. These shares were forfeited. Out of the forfeited shares 1,200 shares (including all shares of Shyam) were re-issued at 10% discount as fully paid-up.
Pass the necessary journal entries in the books of the company by opening ‘Calls in Arrears A/c’ wherever necessary.

Modern Ltd. issued a prospectus inviting applications for 2,00,000 shares of ₹10 each at a premium of ₹6 per share, payable as follows:

Applications were received for 2,60,000 shares and pro-rata allotment was made to the applicants for 2,50,000 shares. Excess money paid on applications for these shares was utilised towards allotment.
A, who applied for 1,000 shares, failed to pay the allotment money and his shares were forfeited after allotment.
B, who applied for 1,500 shares, failed to pay the two calls and his shares were also forfeited.
Of the shares forfeited, 1,800 shares were re-issued as fully paid up for ₹15 per share, the whole of B's share being included. Prepare Cash Book, Journal and Balance Sheet.

Zen Ltd. issued 10,000 equity shares of ₹10 each at a premium of ₹3 per share payable as:

The balance as and when required.
The public applied for 12,000 shares. The company made pro-rata allotment to all the applicants. One shareholder who was allotted 900 shares paid the entire amount with allotment while another shareholder who had applied for 1,200 shares, failed to pay the allotment money and on his subsequent failure to pay the first call his shares were forfeited.
Of the forfeited shares, 800 were reissued at ₹7 per share. You are required to prepare:

1. Share Allotment Account,
2. Securities Premium Reserve Account,
3. Share Forfeiture Account, and
4. Calls-in-Arrears Account.

Suprabhat Ltd. invited applications for issuing 5,00,000 equity shares of ₹10 each payable as follows:
On application and allotment ₹7 per share (including premium ₹4),
On first call ₹4 per share,
On second and final call ₹3 per share.
Applications for 6,00,000 shares were received and pro-rata allotment was made to all the applicants. Excess application money was adjusted on the sums due on calls. A shareholder who had applied for 18,000 shares did not pay the first, and the second and final call. His shares were forfeited. One-third of the forfeited shares were reissued as fully paid at 5% discount.
Pass necessary journal entries for the above transactions in the books of the company.

A limited company forfeited 400 shares of Mr. X, who had applied for 600 shares on account of non-payment of allotment money ₹3 + ₹2.50 (premium) and first call ₹2. Only ₹4 per share was received with application. Out of these, 200 shares were re-issued to Mr. Y at ₹8 per share, ₹9 paid-up.
Give journal entries relating to forfeiture and re-issue.

X Ltd. forfeited 1,500 shares of ₹ 10 each (originally issued at a premium of ₹ 3 per share which was payable along with application money) on which allotment money of ₹ 3 and first call money of ₹ 2 were not received; the final call money of ₹ 3 is not yet called. These shares were originally allotted on pro-rata basis in the ratio of 3:2. These shares were subsequently reissued at a discount of ₹ 1 per share, credited as ₹ 7 paid up. Pass necessary Journal entries for forfeiture and reissue of shares.

AB Ltd. invited applications for issuing 1,00,000 equity shares of no each. The amount was payable as follows:

Applications for 1,50,000 shares were received and pro-rata allotment was made to all applicants as follows:
Applicants for 80,000 shares were allotted 60,000 shares on pro-rata basis.
Applicants for 70,000 shares were allotted 40,000 shares on pro-rata basis.
Sudha, to whom 600 shares were allotted out of the group applying for 80,000 shares failed to pay the allotment money. Her shares were forfeited immediately after allotment.
Asha, who had applied for 1,400 shares out of the group applying for 70,000 shares failed to pay the first and final call. Her shares were also forfeited.
Out of the forfeited shares 1,000 were re-issued @ ₹8 per share fully paid-up. The re-issued shares included all the forfeited shares of Sudha.
Pass necessary journal entries to record the above transactions.

R Ltd. invited application for 3,00,000 shares of ₹10 each, payable as follows:

Application were received for 4,80,000 shares and the allotment was made as follows:

All the shares were allotted on pro-rata basis and excess application money was adjusted towards sum due on allotment.
Archna, who belonged to category I and who had applied for 1,200 shares, failed to pay the allotment money. Her shares were forfeited immediately after allotment was not received. Deepali, who belonged to Category II and who had applied for 600 shares, failed to pay the final call money. Her shares were forfeited after the final call. The forfeited shares were re-issued @ ₹8 per share fully paid up.
Pass necessary journal entries in the books of R Ltd.

X Ltd. invited applications for 4,00,000 shares of ₹10 each. The shares were issued at a premium of ₹7 per share. The amount was payable as follows:

Applications were received for 5,70,000 shares and the allotment was made as under:

1. To applicants for 3,50,000 shares : 2,50,000 shares on pro-rata basis
2. To applicants for 2,00,000 shares : 1,50,000 shares on pro-rata basis
3. To applicants for 20,000 shares : NIL

Excess application and allotment money could be utilized for calls.
A, who belonged to the first category and was allotted 500 shares, failed to pay the first call money. B, who belonged to the second category and was allotted 300 shares also failed to pay the first call money. Their shares were forfeited and were re-issued @ ₹15 per share fully paid-up.
Pass necessary Cash-Book and Journal entries.

Durga Ltd. invited applications for issuing 1,00,000 equity shares of ₹10 each at par. The amount was payable as follows:

Applications were received for 2,80,000 shares. Applications for 30,000 shares were rejected and the money refunded. Allotment was made to the remaining applicants as follows.

Excess money received with applications was adjusted towards sums due on allotment and first and final call. All calls were made and were duly received except the final call by a shareholder belonging to Category I who has applied for 300 shares. His shares were forfeited. The forfeited shares were re-issued at a premium of 30% fully paid up.
Pass necessary Journal entries for the above transactions in the book of Durga Ltd. Open calls in-arrears and calls in advance account wherever required.

Khushboo Ltd. issued for Public subscription 50,000 equity shares of ₹10 each at a premium of 30% payable as under:

Applications were received for 1,00,000 shares. Allotment was made pro-rata to the applicants for 80,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sums due on allotment.
Chatterjee, to whom 1,000 shares were allotted, failed to pay the allotment and call money and the shares were subsequently forfeited. Half of the forfeited shares were reissued as fully paid at a discount of 10%. Show the journal entries to record the above transactions.

Kochi Silk Ltd. issued a prospectus inviting applications for 40,000 shares of ₹10 each at a premium of ₹8 per share, payable as follows:

Applications were received for 80,000 shares and pro-rata allotment was made on the applications for 70,000 shares. It was decided to utilise excess application money towards the sums due on allotment.
X, to whom 1,200 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call his shares were forfeited.
Y, who applied for 3,500 shares failed to pay the two calls and on his such failure, his shares were also forfeited.
Of the shares forfeited, 2,500 shares were reissued as fully paid up for ₹9 per share, the whole of Y's shares being included. Prepare Cash Book and Journal entries.

Jupiter Ltd. issued shares of ₹100 each at a premium of 40% payable as follows:

Vinita, who applied for 700 shares and to whom 400 shares were allotted on prorata basis did not pay allotment and her shares were immediately forfeited. Pass entry for forfeiture of shares.

On 1st April, 2022 Vivek Ltd. was formed with an authorized capital of ₹1,00,00,000 divided into 2,00,000 equity shares of ₹50 each. The company issued prospectus inviting applications for 1,80,000 shares. The issue price was payable as under:

The issue was fully subscribed and the company allotted shares to all the applicants. All money was received except allotment on 5,000 shares. The company did not make the call during the year.
Show the following:

1. Share capital in the Balance Sheet of the company as per Schedule-III Part-I of the Companies Act, 2013.
2. Also prepare ‘Notes to Accounts’ for the same.

Pass necessary journal entries for the following transactions in the books of Gopal Ltd:

Purchased furniture for Rs 2,50,000 from M/s Furniture Mart. The payment to M/s Furniture Mart was made by issuing equity shares of Rs 10 each at a premium of 25%.

Pass necessary journal entries for the following transactions in the books of Gopal Ltd:

Purchased a running business from Aman Ltd, for a sum of Rs 15,00,000. The payment of Rs 12,00,000 was made by issue of fully paid equity shares of Rs 10 each and balance by a bank draft. The assets and liabilities consisted of the following: Plant Rs 3,50,000; Stock Rs 4,50,000; Land and Building Rs 6,00,000; Sundry Creditors Rs 1,00,000

Y Ltd. invited applications for issuing 15,000 equity shares of ₹10 each on which ₹6 per share were called up, which were payable as follows:

The issue was fully subscribed and the amount was received as follows:

The directors forfeited those shares on which less than ₹6 per share were received. The forfeited shares were re-issued at ₹9 per: share, as ₹6 per share paid up.
Pass necessary journal entries for the above transactions in the books of the company.

XYZ Limited has an Authorised Capital of ₹4,00,000 divided into shares of ₹20 each, the whole of which is issued and subscribed at a premium of ₹2 per share. The amount was payable as follows: On Application and Allotment: ₹10 per share; On 1st Call ₹4 per share (including premium) and the balance as and when required.
The company made both the calls. The application and allotment money was duly received. But a shareholder holding 2,000 shares failed to pay both the calls and his shares were forfeited. These shares were later re-issued at ₹14 per share as fully paid. Give journal entries regarding the above.

The Mohan Ltd., has authorised capital of ₹5,00,000 divided into 50,000 shares of ₹10 each. The company issued a prospectus inviting applications for 30,000 shares of ₹10 each at a premium of ₹2 per share, payable as follows: On Application ₹3; On Allotment ₹5 (including premium); On First Call ₹2; On Second and Final Call ₹2.
The Company received applications for 45,000 shares and pro-rata allotment was made in respect of applications of 40,000 shares and the remaining applications were rejected. Money overpaid on applications was employed on account of sums due on allotment. All the calls were made.
B, to whom 300 shares were allotted failed to pay the two calls. The company decided to forfeit the shares allotted to B. These shares were subsequently re-issued to C as fully paid for ₹9 per share.
Prepare Cash Book and pass the necessary journal entries in the books of the company and prepare the Opening Balance Sheet.

A Ltd. forfeited 800 shares of ₹10 each issued at 20% premium (to be paid at the time of allotment) for non-payment of a final call of ₹2 per share. Out of these, 600 shares were re-issued as fully paid-up for ₹13 per share. Journalise.

B Ltd. forfeited 500 shares of ₹10 each issued at 20% premium (to be paid at the time of allotment) for non-payment of the first call of ₹3 per share and final call of ₹2 per share. Out of these, 300 shares were re-issued as fully paid-up for ₹10 per share. Journalise.

C Ltd. forfeited 300 shares of ₹10 each issued at 20% premium (to be paid at the time of allotment) for non-payment of allotment money of ₹4 per share (including premium), first call of ₹3 per share and final call of ₹2 per share. Out of these, 200 shares were re-issued as fully paid-up at a discount of ₹3 per share. Journalise.

X Ltd. forfeited 800 shares of ₹20 each issued at a premium of ₹2 per share to Mahesh (₹18 called-up) on which he did not pay first call of ₹4. Of these, 300 shares were re-issued @ ₹15 per share as ₹18 paid-up. Journalise.

X Ltd., forfeited 1,000 shares of ₹20 each issued at a premium of ₹2 per share to Ashok (₹18 called-up) on which he did not pay allotment of ₹6 (including premium) and Ist Call of ₹4. Give Journal Entries for forfeiture and re-issue in the following cases:

1. 600 shares were re-issued to Mohan at ₹14 per share as ₹18 paid up;
2. 200 shares to Sohan as fully paid-up for ₹24 per share; and
3. 200 shares to Suresh as fully paid-up for ₹10 per share at different intervals of time.

X Limited forfeited 1,000 shares of ₹14 each (₹8 called-up) issued at a premium of ₹2 per share to Mr. R, for non-payment of allotment money of ₹5 per share (including premium). Out of these, 700 shares were re-issued to Mr. Sanjay as ₹8 called for ₹7 per share. Give the necessary Journal entries relating to forfeiture and re-issue of shares.

Y Ltd. forfeited 100 shares of ₹10 each issued at 20% premium (to be paid at the time of allotment) on which first call money of ₹3 was not received; the final call money of ₹2 is not yet called. These shares were subsequently re-issued at ₹7 per share as ₹8 paid-up. Give necessary journal entries regarding forfeiture and re-issue of shares.

Y Ltd. forfeited 2,000 shares of ₹10 each issued at 20% premium (to be paid at the time of allotment) on which allotment money of ₹4 (including premium) and first call money of ₹3 was not received; the final call money of ₹2 is not yet called. 1,500 of these shares were re-issued as fully paid for ₹7 per share. Journalise.

Z Ltd. forfeited 1,200 shares of ₹100 each, issued at a premium of 30% to Dinesh on which he had paid application money of ₹50 per share and allotment money of ₹50 per share (inclucling premium), for non-payment of a first call of ₹10 per share. Out of these, 500 shares were re-issued as fully paid at the maximum rate of discount allowed by law.

Z Ltd. forfeited 700 shares of noo each, issued at a premium of 30% to Ghanshyam on which he had paid application money of ₹35 per share, for non-payment of allotment money of ₹50 per share (including premium) and first call of ₹15 per share. Out of these, 400 shares were re-issued as ₹70 paid-up in such a way that ₹12,000 were transferred to Capital Reserve. Journalise.

500 shares of ₹10 each, issued at a premium of ₹1 on which ₹8 (including premium 1) was called and ₹6 (including premium) was paid, have been forfeited. 400 of these shares were re-issued as fully paid in such a way that ₹800 were transferred to Capital Reserve. Journalise.

On April 1, 2022 the Directors of Ashoka Metals Ltd. issued 60,000 equity shares of ₹10 each at ₹12 per share, the amount payable as ₹5 on application (including premium), ₹4 on allotment and the balance on July 15, 2022.
On April 10, 2022 applications were received for 80,000 shares. Of the cash received in excess, ₹40,000 were returned and ₹60,000 were applied towards the amount due on allotment. The balance of allotment money was received on April 30, 2022. All the shareholders paid the call due on July 15, 2022, with the exception of one shareholder holding 500 shares. These shares were forfeited on August 31, 2022.
You are required to submit Journal Entries regarding the above transactions and also prepare the Balance Sheet of the Company on August 31, 2022.

Mahadev Ltd. with an authorised capital of ₹5,00,000 divided into 50,000 equity shares of ₹10 each, issues the entire amount of the shares payable as follows:

₹5 on Application (including premium of ₹3 per share)
₹4 on Allotment, and
₹4 on Call.

All share money is received in full with the exception of the allotment on 200 shares and the call money on 500 shares (including the 200 shares on which the allotment money has not been paid).
The above 500 shares are duly forfeited and 400 of these (including the 200 shares on which allotment money has not been paid) are re-issued at ₹8 per share as fully paid up. Pass journal entries (including cash transactions) and show the balances in the Balance Sheet giving effect to the above transactions.

R.K. Ltd. invited applications for issuing 70,000 Equity Shares of ₹10 each at a premium of ₹35 per share. The amount was payable as follows:

On Application ₹15 per share (including ₹12 Premium)
On Allotment ₹10 per share (including ₹8 Premium)
On First and Final Call − Balance

Applications for 65,000 shares were received and allotment was made to all the application. A shareholder, Ram who was allotted 2,000 shares were failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the first and final call was made. Sohan, who had 3000 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares 4,000 shares were re-issued at ₹50 per share fully paid up. The re-issued shares included all the shares of Ram.

Pass necessary Journal Entries for the above transactions in the books of R.K. Ltd.

Denspar Ltd. invited applications for issuing 2,00,000 equity shares of ₹10 each at a premium of ₹20 per share. The amount was payable as follows:

Applications for 1,80,000 shares were received. Shares were allotted to all the applicants. Yogesh, a shareholder holding 5,000 shares paid his entire share money along with the allotment money. Vishesh, a holder of 7,000 shares, failed to pay the allotment money. Afterwards the first call was made. Vishesh paid the allotment money along with the first call money. Samyesh, holding 2,000 shares did not pay the final call. Samyesh's shares were forfe ited immediately after the final call. Out of the forfeited shares, 1,500 shares were reissued at ₹8 per share fully paid up.

Pass the necessary journal entries for the above transactions in the books of Denspar Ltd.

Nitro Paints Ltd. invited applications for issuing 1,60,000 equity shares of ₹10 each at a premium of ₹3 per share. The amount was payable as follows:

Applications for 1,80,000  shares were received. Applications for 10,000  shares were rejected and pro rata allotment was made to the remaining applicants. Over payment received on application was adjusted towards sums due on allotment. All calls were made and were duly received except allotment and final call from Aditya who was  allotted 3,200 shares. His shares were forfeited. Half of the forfeited shares were reissued for ₹43,000 as fully paid-up.
Pass necessary journal entries for the above transactions in the books of Nitro Paints Ltd.

D Ltd. offered to the public 20,000 shares of ₹100 each at a premium of ₹20 per share payable as follows:

Applications were received for 26,000 shares out of which those for 1,000 shares were rejected outright; full allotment was made to the applicants for 5,000 shares and pro-rata allotment was made to balance.
Final Call was not made and a shareholder holding 600 shares to whom allotment was made on pro-rat a basis failed to pay the allotment and first call money. His shares were forfeited. Out of these, 500 shares were re-issued at ₹70 per share as ₹75 paid-up.
Prepare Cash Book, Journal entries and the Balance Sheet of the company.

A Limited company invites applications for 50,000 equity shares of ₹10 each payable as follows:

Applications were received for 70,000 shares. Allotments were made on the following basis:

1. To applicants for 10,000 shares - in full
2. To applicants for 60,000 shares - 40,000 shares

Excess money paid on application was utilised towards allotment money.
A shareholder who was allotted 1,000 shares out of the group applying for 60,000 shares failed to pay allotment money and money due on calls. These shares were forfeited. 600 forfeited shares were re-issued as fully paid on receipt of ₹8 per share.
Prepare Cash Book and journal entries in the books of company.

X Ltd. invited applications for 50,000 Equity Shares of ₹10 each, payable ₹3.50 on application; ₹5 on allotment (including premium ₹2.50); and ₹4 on first and final call.
The company received applications for 65,000 shares. It was decided:

1. to refuse allotment to the applicants for 5,000 shares;
2. to allot in full to the applicants for 20,000 shares;
3. to allot balance of the available shares pro-rata among the other applicants; and
4. to utilise the excess application money in part payment of allotment money.

All the money due was received except from one applicant to whom shares had been allotted on pro-rata basis. He failed to pay allotment and call money and his 300 shares were forfeited. These shares were re-issued at ₹9 as fully paid.
Give journal entries to record the above transactions in the books of the company.

New Industries Limited issued a prospectus, inviting applications for 1,00,000 shares of no each at a premium of ₹5 per share, payable as follows: On Application ₹4.50; On Allotment ₹7.50 (including Premium); On Ist Call ₹2.00 and On Final Call ₹1.00.
Applications were received for 1,25,000 shares and allotment was made pro-rata to the applicants of 1,20,000 shares, the remaining applications being refused. Money received in excess on the application was adjusted towards the amount due on allotment.
D, to whom 2,000 shares were allotted, failed to pay allotment money and on his failure to pay the first call, his shares were forfeited. M, the holder of 3,000 shares, failed to pay the two calls, and so his shares were also forfeited. All these shares were sold to R, credited as fully paid for ₹8 per share.
Pass Cash Book and journal entries (with narrations) to record the above issue of shares by the company.

X Limited offered to the public 10,000 equity shares of ₹10 each at a premium of ₹2 per share payable as follows:
On application ₹3; On allotment (including premium) ₹4; On first call ₹3 and on second and final call ₹2.
Applications were received for 15,000 shares.
All applications were placed under four categories and allotment was made as follows:

Except in the cases where applications were wholly rejected, excess application money was not to be refunded but to be adjusted against moneys due on allotment and calls.
A, an applicant under category B to whom 400 shares were allotted failed to pay the allotment money and on his failure to pay the first call his shares were forfeited.
B, an applicant under category C to whom 300 shares were allotted failed to pay both the calls and ms shares were also forfeited.
500 of the shares thus forfeited were re-issued to C as fully paid for ₹8 per share.
Show Cash Book, Journal entries and prepare the Balance Sheet in the books of the company; you are to assume that the whole of the A's shares were issued to C.

Premier Tools Ltd. invited applications for issuing 2,00,000 equity shares of ₹10 each at a premium of ₹2 per share. The amount was payable as follows:

Applications were received for 2,50,000 shares. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payments received on application were adjusted towards sums due on allotment.

All calls were made and duly received except allotment and first and final call from Naveen who applied for 7,200 shares. His shares were forfeited. Half of the forfeited shares were reissued for ₹48,000 as fully paid.

Pass the necessary journal entries for the above transactions in the books of Premier Tools Ltd. Open calls-in-arrears account wherever required.

X Ltd. invited applications for issuing 80,000 equity shares of ₹10 each at a premium of ₹2 per share. The amount was payable as follows:
On application ₹6 (including premium) per share.
On allotment ₹3 per share.
Balance on first and final call.
Applications for 90,000 shares were received. Applications for 5,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Over payments received on application was adjusted towards sums due on allotment. All calls were made and were duly received except the allotment and final call on 1,600 shares allotted to Vijay. These shares were forfeited and the forfeited shares were re-issued for ₹18,400 fully paid up.
Pass necessary journal entries in the books of the company.

A Ltd. forfeited 400 shares of Mr. X who had applied for 600 shares on account of non-payment of allotment, first call and final call. Shares were issued at ₹2 premium payable as follows:
On Application ₹3, on Allotment ₹3 + 2, on First call ₹2 and Final Call ₹2. Out of these, 300 shares were re-issued to Mr. Y at the rate of ₹12 per share as fully paid shares. Give journal entries in the books of company to record above transactions.

K Limited has been registered with an authorised capital of ₹20,00,000 divided into 20,000 shares of ₹100 each, of which 10,000 shares were offered for public subscription at a premium of ₹5 per share, payable as under:

Applications were received for 18,000 shares, of which applications for 3,000 shares were rejected outright; the rest of the applications were allotted 10,000 shares on pro-rata basis. Excess application money was transferred to allotment.
All the moneys were duly received except from Sundar, holder of 200 shares, who failed to pay allotment and first call money. His shares were later forfeited, and re-issued to Shyam at ₹60 per share, ₹70 paid up. Final Call has not been made. Pass necessary Cash Book and Journal entries in the books of K Limited.

Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of Rs 10 each at a premium of Rs 2 per share. The amount was payable as follows:

Applications for 1,50,000 share were received. Shares were allotted to all the applicants on pro-rata basis. Excess money received on applications was adjusted towards sums due on allotment. All calls were made. Manu who has applied for 3,000 shares failed to pay the amount due on an allotment and first and final call. Madhur who was allotted 2,400 shares failed to pay the first and final call. Shares of both Manu and Madhur were forfeited. The forfeited shares were re-issued at Rs 9 per share as fully paid up. Pass necessary journal entries for the above transactions in the books of Jeevan Dhara Ltd.

Ganesh Ltd. issued a prospectus inviting applications for 20,000 shares of ₹10 each at a premium of ₹4 per share, payable as follows

Applications were received for 30,000 shares and pro-rata allotment was made on the applications for 24,000 shares. It was decided to utilise excess application money towards the sums due on allotment.
X, who was allotted 500 shares, failed to pay the allotment money and on his subsequent failure to pay the first call, his share were forfeited.
Y, who applied for 1,800 shares, failed to pay the two calls and his shares were forfeited after the second call.
Of the shares forfeited, 1,700 shares were re-issued as fully paid up for ₹8 per share, the whole of Y's shares being included.
Prepare Cash Book, Journal and Balance Sheet.

Vinod Papers Ltd. invited applications for issuing 1,00,000 shares of ₹10 each at a premium of ₹4 per share payable as follows:

Applications were received for 1,30,000 shares and pro-rata allotment was made to all applicants as follows:

1. Applicants for 80,000 shares were allotted 60,000 shares, and
2. Applicants for 50,000 shares were allotted 40,000 shares.

X, who belonged to the first category and was allotted 900 shares failed to pay the allotment and call money.
Y, who belonged to the second category and who applied for 1,000 shares also failed to pay the allotment and call money. Their shares were forfeited and 1,400 of the forfeited shares were re-issued @ ₹9 per share as fully paid. Re-issued shares included whole of Y's shares.
Prepare Cash Book, journal entries and an opening Balance Sheet.

X Ltd., issued 50,000 shares of Rs 10 each at a premium of Rs 2 per share payable as follows:

Rs 3 on application
Rs 6 on allotment (including premium) and
Rs 3 on call

Applications were received for 75,000 shares and a pro-rata allotment was made as follows:
To the applicants of 40,000 shares, 30,000 shares were issued and for the rest 20,000 shares were issued. All money due were received except the allotment and call money from Ram who had applied for 1,200 shares (out of the group of 40,000 shares). All his shares were forfeited. The forfeited shares were re-issued for Rs 7 per share fully paid up.
Pass necessary Journal Entries for the above transaction.

Shiva Ltd. invited applications for issuing 2,00,000 Equity Shares of ₹100 each at a premium of ₹60 per share. The amount was payable as follows:

On application ₹30 per share (including premium ₹10).
On allotment ₹70 per share (including premium ₹50).
On first and final call the balance amount.

Applications for 1,90,000 shares were received. Shares were allotted to all the applicants and the company received all money due on allotment except Jain who had been allotted 1,000 shares, and his shares were immediately forfeited. Afterwards first and final call was made. Gupta did not pay the first and final call on his 2,000 allotted shares. His shares were also forfeited. 50% of the forfeited shares of both Jain and Gupta were re-issued for ₹90 per share fully paid up.
Pass necessary journal entries in the books of Shiva Ltd. for the above transactions.

X Ltd. issued 40,000 Equity Shares of ₹10 each at a premium of ₹2.50 per share. The amount was payable as follows:

Owing to heavy subscription the allotment was made on pro-rata basis as follows:

1. Applicants for 20,000 shares were allotted 10,000 shares.
2. Applicants for 56,000 shares were allotted 14,000 shares.
3. Applicants for 48,000 shares were allotted 16,000 shares.

It was decided that excess amount received on applications would be utilised on allotment and the surplus would be refunded.
Ram, to whom 1,000 shares were allotted, who belong to category; (a), failed to pay allotment money. His shares were forfeited after the call.
Pass the necessary Journal entries in the books of X Ltd. for the above transactions.

NH Ltd, with an authorized capital of ₹ 10,00,000 divided into 1,00,000 Equity shares of ₹10 each, issued 50,000 shares to the public at a premium of ₹2 per share, payable as follows:

₹5 on Application (including premium)
₹3 on Allotment
₹4 on First and Final Call.

The subscription was at par and the share money was received in full with the exception of the allotment money on 4,000 shares held by shareholder Ravi and the call money on 6,000 shares (including Ravi's shares).
The above 6,000 shares were forfeited by the company and 5,000 of these (including the shares which had been allotted to Ravi) were reissued at ₹8 per share as fully paid-up.
You are required to pass journal entries to record the above transactions in the books of the company.

Meera Ltd. invited applications for 50,000 equity shares of ₹10 each at a premium of ₹2 per share, payable as follows:

The Company received applications for 62,500 shares.
It was decided to:

1. Refuse allotment to the applicants of 2,500 shares.
2. Allot in full to applicants of 10,000 shares.
3. Allot the balance of the shares applied on a pro-rata basis among the other applicants.
4. Utilize the excess application money in part payment of allotment money.
5. Charge interest on calls-in-arrears, if any, @ 10% per annum.

All the money due was received except from one shareholder to whom 200 shares had been allotted in full. The amount was due by him to the company even till the date of the Balance Sheet, which was 31st March, 2018.
The company charged interest on calls-in-arrears from the shareholder from the date on which it was due till the Balance Sheet date.
You are required to, for the year 2017-18:

1. Prepare the Cash Book to record the above issue of shares.
2. Pass journal entries in the Journal Proper (including entries for interest on calls-in-arrears).

Sudesh Ltd. was registered with an authorised capital of ₹ 40,00,000 divided into 4,00,000 Equity Shares of ₹ 10 each.

The company offered 50,000 shares to the public at a premium of ₹ 2 per share, payable as follows:

₹ 3 on application

₹ 6 on allotment (including premium)

₹ 3 on first and final call (due two months after allotment)

Applications were received for 60,000 shares and pro-rata allotment was made as follows:

Category A: The applicants of 40,000 shares were allotted 30,000 shares.

Category B: The applicants of 20,000 shares were allotted in full.

Excess money paid on application was utilized towards allotment.

Nobby, a shareholder from Category A, who had applied for 1,200 shares failed to pay the allotment and call money.

Vineet, a shareholder from Category B, who had been allotted 1,000 shares, paid the call money due, along with allotment.

The company forfeited Nobby’s shares after the first and final call and paid interest on Calls-in-advance to Vineet @ 12% per annum on the day of the final call.

You are required to:

1. Pass journal entries to record the above transactions in the books of the company (including entries for interest on Calls-in-advance).
2. Prepare Calls-in-arrears Account.

In the year 2022-23, Paresh Ltd. invited applications for 25,000 equity shares of ₹10 each payable as follows:

Applications were received for 50,000 shares. It was decided:

1. To allot 50% to Shyam who had applied for 10,000 shares.
2. To allot in full to Kevin who had applied for 10,000 shares.
3. To allot the balance of the available shares on pro rata basis among the other applicants.
4. To utilise the excess application money in part payment of allotment and final call.

Till the Balance Sheet as at 31st March, 2023, the company had asked the shareholders to pay up to the allotment stage.
The amount due on the allotment was received from all shareholders except from Kevin, whose shares were immediately forfeited by the company.
You are required to pass journal entries in the books of the company to record the above transactions.

Following is an extract from the Journal of MM Ltd. You are required to complete the journal entries filling up the information represented by ‘?’ which is missing from these journal entries.

Additional information:

MM Ltd. issued 20,000 Equity shares of the face value of ₹10 each at a premium of ₹5 per share, payable:

₹5 on application;
₹6 on allotment (including premium);
₹3 on first call;

The balance as and when due
You are required to complete:

• The journal entry for forfeiture of shares.
• The journal entry for reissue of shares, clearly mentioning the number of forfeited shares reissued by the company.

Gama Ltd. issued 2,00,000 Equity shares of ₹10 each to the public, payable as follows:

₹2 on Application
₹3 on Allotment (on 1st November, 2022)
₹5 on First & Final Call (on 1st March, 2023)

Applications were received for 2,50,000 shares. The directors of the company accepted applications for 2,00,000 shares and refunded the application money on the remaining shares.
One shareholder who was allotted 3,000 shares paid the first and final call with allotment.
Another shareholder did not pay his allotment on 2,000 shares when due but paid it with the first and final call along with interest on calls-in-arrears.
The directors of the company charged interest on calls-in-arrears at the rate provided in Table F of the Companies Act. 2013. No interest was allowed on calls-in-advance.
You are required to pass journal entries to record the above transactions in the books of Gama Ltd.

Stem Ltd. came up with an IPO inviting the public to subscribe to its Equity shares of ₹10 each. The issue was over-subscribed. The company allotted 80,000 shares to all the applicants making a pro-rata allotment in the ratio of 3:2.
The face value of the share was payable in three instalments.
Based on the information given above and the following extract of ledger accounts and Cash Book (Bank Column), answer the questions that follow:

1. What are the number of shares applied for by the public?
2. What is the amount payable per share with application?
3. What is the amount payable per share with first and final call?
4. Stem Ltd. did not receive the allotment money and call money due from the shareholder Rehan, who had applied for 3,000 shares. What is the amount received by Stem Ltd. with allotment?
5. Stem Ltd. forfeited Rehan’s shares after the final call. It reissued 1,500 forfeited shares fully called up @ ₹13 per share
   Give the journal entries passed by the company for:
   1. Forfeiture of these shares
   2. Reissue of the forfeited shares

Hero Ltd. was registered with a capital of ₹5,00,000 divided into 20,000 shares of ₹25 each, payable as:

The company offered to the public for subscription 10,000 shares. It received applications for 11,100 shares.

From amongst the applicants:

1. Vimal, who had applied for 1,200 shares, paid ₹6,000 on application but was allotted only 600 shares.
2. Mohan applied for 1,000 shares, paid the full amount of ₹25,000 with his application but was allotted only 500 shares.
3. Vineet, who had applied for 1,500 shares, paid his application and allotment money in order but did not pay the call money.
4. The remaining applicants paid as and when due.

The surplus money paid by both Vimal and Mohan was used towards allotment and call and any surplus beyond the call was refunded.
The company forfeited Vineet’s shares and later re-issued 500 of the forfeited shares @ ₹20 per share fully paid up.

You are required to pass journal entries in the books of Hero Ltd.

The liability of members in a company is ______.

In One Person Company (OPC), which of the following can be a member?

Maximum number of members in a private company is ______.

Capital of a Company is divided in units which is called ______.

Shareholders receive from the company:

Equity shares cannot be issued for the purpose of ______.

A company cannot issue ______.

To whom dividend is given at a fixed rate in a company?

Preference shareholders have ______.

The shares on which there is no any pre-fixed rate of dividend is decided, but the rate of dividend is fluctuating every year according to the availability of profits, such share are called ______.

A preference share which does not carry the right of sharing in surplus profits is called ______.

Which shareholders have a right to receive the arrears of dividend from future profits ______.

Which shareholders are returned their capital after some specified time?

The following statements apply to equity/preference shareholders. Which one of them applies only to preference shareholders?

Unless otherwise stated, a preference share is always deemed to be ______.

Nominal share capital is ______.

Subscribed capital is ______.

Krishan Ltd has Issued Capital of 20,00,000 Equity shares of ₹10 each. Till Date ₹8 per share have been called up and the entire amount received except calls of ₹4 per share on 800 shares and ₹3 per share from another holder who held 500 shares. What will be amount appearing as ‘Subscribed but not fully paid capital’ in the balance sheet of the company?

The portion of the capital which can be called-up only on the winding up of the Company is called ______.

Capital included in the Total of Balance Sheet of a Company is called ______.

Reserve Capital is also known by:

Reserve Capital is ______.

Which of the following statements does not relate to ‘Reserve Capital’:

In the Balance Sheet of a company, under the heading share capital, at the last is shown ______.

Which of the following is not shown under the heading ‘Share Capital’ in a Balance Sheet:

Reserve Capital is a part of ______.

Which of the following statement is/are true?

1. Authorized Capital < Issued Capital
2. Authorized Capital ≥ Issued Capital
3. Subscribed Capital ≤ Issued Capital
4. Subscribed Capital > Issued Capital

According to SEBI Guidelines, Minimum Subscription has been fixed at ______ of the issued amount.

One of the conditions, in addition to others, for allotment of shares is ______.

Persons who start a company are called ______.

Minimum subscription amount of 90% is related to which share capital?

Share Application Account is in the nature of ______.

As per SEBI Guidelines, Application money should not be less than ______ of the issue price of each share.

4,000 Equity Shares of ₹10 each were issued at 8% premium to the promoters of a company for their services. Which account will be debited?

Excess value of net assets over purchase consideration at the time of purchase of business is ______.

If vendors are issued fully paid shares of ₹1,25,000 in purchase consideration of net assets of ₹1,50,000, the balance of ₹25,000 will be credited to ______.

On issue of shares Premium is ______.

Newfound Ltd took over business of Old land ltd and paid for it by issue of 30,000, Equity Shares of ₹100 each at a par along with 6% Preference Shares of ₹1,00,00,000 at a premium of 5% and a cheque of ₹8,00,000. What was the total agreed purchase consideration payable to Old Land ltd.

In which of the following situation Companies Act 2013 allows for issue of shares at discount?

Net Assets minus Capital Reserve is ______.

Which of the following is not a capital profit?

Maximum limit of Premium on shares is:

When a company issues shares at a premium, amount of premium may be received by the company:

For what purpose securities premium account cannot be utilized?

Which of the following is not a purpose for which the securities premium amount can be used?

Interest on calls in arrears is charged according to Table F at ______.

Amount of Calls in Arrears is shown in the Balance Sheet ______.

According to Sec 50 of the Companies Act 2013, the amount of Calls in Advance can be accepted by the Company only when it is authorised by ______.

As per Table F, the Company is required to pay ______ interest on the amount of calls in advance.

Amount of Calls in Advance is ______.

First call amount received in advance from the shareholders before it is actually called up by the directors is ______.

Following amounts were payable on issue of shares by a Company: ₹3 on application, ₹3 on allotment, ₹2 on first call and ₹2 on final call. X holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay final call. Amount of calls in arrear will be:

The subscribed capital of a company is ₹80 00,000 and the nominal value of the share is ₹100 each. There were no calls in arrear till the final call was made. The final call made was paid on 77,500 shares only. The balance in the calls in arrear amounted to ₹62,500. Calculate the final call on share.

A shareholder holding 600 shares paid the amount of call @ ₹5 per share on 1st November 2022 whereas the call was due on 1st March 2023. Interest on calls in advance as per Table F will be ______.

From which account, expenses on issue of shares will be written off first of all:

Authorised capital of a Company is divided into 5,00,000 shares of ₹10 each. It issued 3,00,000 shares. Public applied for 3,60,000 shares. Amount of issued capital will be ______.

A Company invited applications for 1,00,000 shares and it received applications for 1,50,000 shares. Applications for 30,000 shares were rejected and the remaining were allotted shares on prorata basis. How many shares an applicant for 3,000 shares will be allotted?

E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application was ₹2. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F will be ______.

Anish Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares and pro-rata allotment was made to the applicants of 2,400 shares. If Dhruv has been allotted 40 shares, how many shares he must have applied for?

A company issued 4,000 equity shares of ₹10 each at par payable as under: On application ₹3; on allotment ₹2; on first call ₹4 and on final call ₹1 per share.
Applications were received for 13,000 shares. Applications for 3,000 shares were rejected and pro-rata allotment was made to the applicants for 10,000 shares. How much amount will be received in cash on first call? Excess application money is adjusted towards amount due on allotment and calls.

A company issued 4,000 equity shares ₹10 each at par payable as under: On application ₹3; on allotment ₹2; on first call ₹4 and on final call ₹1 per share.
Applications were received for 10,000 shares. Allotment was made pro-rata. How much amount will be received in cash on allotment?

Forfeiture of shares results in the reduction of ______.

Which one of the following items is not a part of subscribed capital?

At the time of forfeiture of shares the share capital account is debited with ______.

Voluntary return of shares for cancellation by the shareholders is called ______.

If the Premium on the forfeited shares has already been received, then in the entry of forfeiture of shares Securities Premium A/c should be:

Balance of share forfeiture account is shown in the balance sheet under the head ______.

If a share of ₹10 issued at a premium of ₹3 on which the full amount has been called and ₹8 (including premium) paid is forfeited the capital account should be debited with ______.

If a share of ₹10 issued at a premium of ₹1 on which ₹9 (including premium) have been called and ₹7 including premium is paid is forfeited, the capital account should be debited by  ______.

Jeevan Ltd. forfeited 50 shares of ₹100 each on which allotment money of ₹30 per share (including premium of ₹10 per share) and first call of ₹30 per share was not received. The second and final call of ₹20 per share was not yet made. The amount credited to ‘Share Forfeiture Account’ on forfeiture of these shares will be:

800 shares of ₹10 each issued at 20% premium were forfeited for non-payment of allotment money of ₹5 (including premium) and first & final of ₹3 per share. Share Forfeiture Account will be credited with:

800 shares of ₹10 each issued at 30% premium (to be paid on allotment) were forfeited for non-payment of ₹2 per share on first call and ₹2 per share on final call. Share Forfeiture Account will be credited with:

If 500 shares of ₹10 issued at a premium of ₹1 on which ₹9 (including premium) have been called and ₹7 including premium have been paid are forfeited, the forfeiture account should be credited by:

Mohit had applied for 900 shares and was allotted in the ratio 3 : 2. He had paid application money of ₹3 per share and couldn’t pay allotment money of ₹5 per share. First and Final call of ₹2 per share was not yet made by the company. His shares were forfeited. The following entry will be passed:

Here X, Y and Z are:

The amount of discount on reissue of forfeited shares cannot exceed ______.

Discount allowed on re-issue of forfeited shares is debited to ______.

The balance of the forfeited shares account after re-issue of forfeited shares is transferred to ______.

X Ltd. forfeited 500 shares of ₹10 each fully called up for non-payment of final call of ₹3 per share 300 of these shares were reissued at ₹9 per share, fully paid up. What is the amount to be transferred to Capital Reserve Account?

Y Ltd. forfeited 400 shares of ₹10 each, ₹7 called up, for non-payment of first call of ₹2 per share. Out of these, 300 shares were reissued for ₹6 per share as ₹7 paid up. What is the amount to be transferred to Capital Reserve Account?

400 shares of ₹10, on which ₹8 has been called and ₹5 has been paid, are forfeited. Out of these, 300 shares are re-issued for ₹9 as fully paid. What is the amount to be transferred to Capital Reserve Account?

R Ltd. forfeited 600 shares of ₹100 each ₹70 called up on which Mahesh has paid application and allotment money of ₹50 per share. Of these, 400 shares were re-issued to Naresh as fully paid-up for ₹110 per share. What is the amount to be transferred to Capital Reserve?

Madhu Ltd. forfeited 800 shares of ₹10 each issued at 10% premium to Shyam (₹9 called up) on which he did not pay ₹3 of allotment (including premium) and first call of ₹2. Out of these, 600 shares were re-issued to Ram as fully paid up for ₹9 per share. What is the amount to be transferred to capital Reserve?

Ronaldo Ltd. forfeited 300 equity shares of ₹10 each, fully called up, on which ₹5 per share (including premium of ₹1 per share) was received. It later reissued these shares at a discount.
The maximum discount per share, which the company could have given on their reissue would be:

3,000 equity shares of ₹10 each were issued at ₹5 per share premium. Only ₹9 per share (including premium) has been paid on these shares. These shares were forfeited. Later on out of these, certain shares were reissued at a discount of ₹1 per share as fully paid and ₹4,800 were transferred to Capital Reserve. How many shares were re-issued?

A Ltd. forfeited 2,000 shares of ₹10 each fully called up for non-payment of final call of ₹2 per share. 1,200 of these shares were reissued at ₹7 per share, fully paid up. What is the amount to be transferred to Capital Reserve Account?

Using information given in the following what is the net balance in Share Forfeiture Account.
Boyle Ltd. issued 40,000 shares of ₹10 each. Applications for 2,00,000 shares were received. Amount per share was payable as follows:

Shares were allotted on pro rata basis to all the applicants. Excess money received with applications was refunded after adjustment in allotment and first and final call.

B Ltd. forfeited 300 shares of ₹100 each, ₹70 called up, for non-payment of first call of ₹20 per share. Out of these, ..... shares were reissued for ₹60 per share as ₹70 paid up and ₹8,000 were transferred to Capital Reserve. How many shares were re-issued?

Vishnu Ltd. forfeited 20 shares of ₹10 each, ₹8 called up, on which John had paid application and allotment money of ₹5 per share, of these, 15 shares were reissued to Parker as fully paid up for ₹6 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account?

Z Ltd. forfeited 300 shares of ₹10 each issued at 20% premium (₹9 called up) on which ₹4 of allotment (including premium) and first call of ₹2 has not been received. Out of these, 100 shares were re-issued as fully paid up for ₹9 per share. What is to amount to be transferred to capital Reserve?

Using infomation given below, what is the net balance left in Share Forfeiture Account?

XY Limited issued 2,50,000 equity shares of ₹10 each at a premium of ₹1 each payable as ₹2.5 on application, ₹4 on allotment and balance on the first and final call. Applications were received for 5,00,000 equity shares but the company allotted to them only 2,50,000 shares. Excess money was applied towards amount due on allotment. Last call on 500 shares was not received and shares were forfeited after due notice. This is a case of:

Harish Ltd. forfeited 500 shares of ₹100 each issued at 40% premium (₹70 called up) on which application & allotment of ₹80 each (including premium) has been received. Out of these, ......... shares were reissued for ₹65 per share (₹70 paid up) and ₹7,000 were transferred to Capital Reserve. How many shares were re-issued?

A Company forfeited 1,000 shares of ₹10 each fully paid on which ₹7,000 has been paid. Out of these 800 shares were reissued upon payment of ₹7,600. Amount transferred to Capital Reserve will be ______.

Raja Ltd. forfeited 300 shares of ₹100 each, ₹75 called up, for non-payment of first call of ₹20 per share. All these shares were reissued for ₹..... per share as ₹75 paid up. If amount transferred to Capital Reserve is ₹40 per share then what is the reissue price?

Pragya Ltd. forfeited 8,000 equity shares of ₹100 each issued at a premium of 10% for non-payment of first and final call of ₹30 per share. The maximum amount of discount at which these shares can be reissued will be ______.

On the forfeiture of 100 shares of ₹50 each, ₹2,500 were credited to share forfeited account. These shares were re-issued at ₹25 per share fully paid up. The amount credited to ‘Capital Reserve Account’ will be:

Apaar Ltd forfeited 4,000 shares of ₹20 each, fully called up, on which only application money of ₹6 has been paid. Out of these 2,000 shares were reissued and ₹8,000 has been transferred to capital reserve. Calculate the rate at which these shares were reissued.

What will be the correct sequence of events?

1. Forfeiture of shares.
2. Default on Calls.
3. Re-issue of shares.
4. Amount transferred to capital reserve.

X Ltd. issued 40,000 equity shares of ₹10 each at a premium of 20%. The amount was payable as follows:

The issue was over subscribed. ‘A’, who applied for 900 shares and was allotted 600 shares paid the entire share money with application. At the time of transfer of share application money, ‘Calls in Advance Account’ will be:

Santiago Ltd. invited applications for issuing 2,00,000 shares of ₹10 each payable ₹3 per share on application, ₹5 per share on allotment and ₹2 per share on first and final call. The issue was oversubscribed and the company received ₹9,60,000 as application money. The company rejected some applications and pro rata allotment was made to the remaining applicants in the ratio of 5 : 4. Applications for how many shares were rejected?

Boyle Ltd. issued 40,000 shares of ₹10 each. Applications for 2,00,000 shares were received. Amount per share was payable as follows:

Shares were allotted on pro rata basis to all the applicants. Excess money received with applications was refunded after adjustment in allotment and first and final call. For refunding the excess amount, the Bank Account will be credited by:

Sushila Ltd. has an ‘Authorized Capital’, of ₹10,00,000 divided into equity shares of ₹10 each. Subscribed and fully paid up share capital of the company was ₹4,00,000. To meet its new financial requirement, the company issued 20,000 equity shares of ₹10 each. Amount per share was payable as ₹3 on application, ₹3 on allotment; ₹2 on first call and ₹2 on second and final call. The issue was fully subscribed. The allotment money was payable on or before May 1, 2020; first call money was due on August 1, 2020 and final call money was due on October 1, 2020. X whom 1,000 shares were allotted did not pay the allotment and both calls; Y an allottee of 600 shares; did not pay the two calls; and Z whom 300 shares were allotted did not pay the final call. Subscribed capital presented in the Balance sheet of the Company as per schedule III Part I of the Companies Act, 2013 will be:

Vandana Ltd. issued 6,000 equity shares of ₹10 each at 10% premium. The issue was fully subscribed. Amount per share was payable as follows:

On application ₹3, on allotment ₹3 (including premium), On first call ₹3 and on final call ₹2. A, a holder of 200 shares paid the entire money along with allotment. The amount received on allotment will be ______.

The company has to get minimum subscription within ______ from the date of issue of the prospectus. When minimum subscription has been received, the directors of the company proceed to make ______ which implies a valid contract between the company and the applicants who now become the allottee and assume the status of shareholders or members.

Uncalled Capital is that portion of the ______ which has not yet been called up and the portion of such uncalled capital to be called only in the event of winding up of the company is called ______.

How much amount was received on allotment?

How much total amount was credited to share forfeiture account on forfeiture of shares?

X Ltd. invited applications for issuing 10,00,000 equity shares of ₹ 10 each at a premium of ₹ 9 per share. The amount was payable as follows:

• On Application - ₹ 6 per share (including premium ₹ 3)
• On Allotment - ₹ 8 per share (including premium ₹ 4)
• On first and final call - Balance

Applications for 15,00,000 shares were received. Shares were allotted on pro-rata basis to all applicants. Excess application money received with applications was adjusted towards sums due on allotment. Dharam to whom 600 shares were allotted failed to pay the allotment money. Allotment amount that was not paid by Dharam was:

Attire Ltd. issued a prospectus inviting applications for 12,000 shares of ₹10 each payable ₹3 on application, ₹5 on allotment and balance on a call. Public had applied for a certain number of shares and application money was received. Which of the following application money, if received restricts the company to proceed with the allotment of shares, as per SEBI guidelines?

As per Companies Act 2013, Securities Premium Balance can be utilised for which of the following purpose?

ABC Ltd. offered 60,000 shares of ₹10 each to the public. The public applied for 1,00,000 shares. The company made pro-rata allotment in the ratio of 3:2 and the remaining applications were rejected and money refunded to the applicants. On how many shares did the company refund the application money?

The Subscribed Capital of a company refers to ______.

If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share and only 7,000 shares were re-issued @ ₹11 per share as fully paid up, then what is the amount of maximum possible discount that company can allow at the time of re-issue of the remaining 3,000 shares?

On 1^st April 2022, Galaxy ltd. had a balance of ₹8,00,000 in Securities Premium account. During the year company issued 20,000 Equity shares of ₹10 each as bonus shares and used the balance amount to write off Loss on issue of Debenture on account of issue of 2,00,000, 9% Debentures of ₹100 each at a discount of 10% redeemable @ 5% Premium. The amount to be charged to Statement of P & L for the year for Loss on issue of Debentures would be:

A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including ₹1 premium) has been paid. Out of these few shares were re-issued at a discount of ₹1 per share were and ₹6,000 were transferred to Capital Reserve. How many shares were re-issued?

Mayfair Ltd. forfeited 2,000 shares of ₹10 each, ₹7 called up, on which ₹4 per share (including ₹2 premium) and ₹2 per share on first call has not been paid. Out of these 500 shares were re-issued as fully paid and ₹750 was transferred to Capital Reserve. On re-issue, how much amount will be transferred to Bank A/c?

Mayfair Ltd. forfeited 2,000 shares of ₹10 each, ₹7 called up, on which ₹4 per share (including ₹2 premium) and ₹2 per share on first call has not been paid. Out of these 500 shares were re-issued as fully paid and ₹750 was transferred to Capital Reserve. On re-issue, how much amount will be transferred to Bank A/c?

Sinoy Ltd. issued 20,000 shares of ₹10 each at a premium of ₹6. The amount was payable as follows:

The issue was fully subscribed. All the money was duly received except the allotment and first and final call on 1,000 shares. These shares were forfeited. On forfeiture of these shares, the ‘Securities Premium Account’ will be debited by:

Raghav Ltd. forfeited 100 shares of ₹ 10 each issued at a premium of 20% for non-payment of first call of ₹ 3 per share and final call of ₹ 1 per share. The minimum price per share at which these shares can be reissued will be ______.

Alfa Ltd. invited applications for 50,000 equity shares of ₹10 each at a premium of 30%. The whole amount was payable on application. Applications were received for 2,50,000 shares. The company decided to allot the shares on a pro-rata basis to all the applicants. The amount refunded by the company was ______.

Sarita Ltd. forfeited 100 shares of ₹ 10 each, ₹ 8 called up issued at a premium of ₹ 2 per share to Ramesh for nonpayment of allotment money of ₹ 5 per share (including premium). The first and final call of ₹ 2 per share was not made. Out of these 70 shares were reissued to Ashok as ₹ 8 called up for ₹ 10 per share. The gain on reissue will be ______.

An offer of securities or invitation to subscribe securities to a select group of persons is termed as ______.

Forfeiture of shares leads to reduction of ______ Capital.

Shares issued as sweat equity can be

1. Issued at par.
2. Issued at discount.
3. Issued at a premium.

Which of the following is correct?

X Ltd. purchased a running business from Y Ltd. payable by the issue of equity shares of ₹10 each, ₹8 paid. The assets and liabilities consisted of the following:

How many equity shares will be issued to Y Ltd.:

A company issued 20,000 equity shares of ₹10 each at par payable as under: On application ₹3; on allotment ₹2; on first call ₹4 and on final call ₹1 per share. 
Applications were received for 65,000 shares. Applications for 15,000 were rejected and pro-rata allotment was made to the applicants for 50,000 shares. How much amount will be received in cash on first call? Excess application money is adjusted towards amount due on allotment and calls.

X Ltd. forfeited 1,000 shares of ₹10 each for non-payment of final call of ₹3 each. After reissue of 600 of these shares, ₹3,000 were transferred to Capital Reserve. Shares were reissued for ______.

X Ltd. invited applications for issuing 1,60,000 shares of ₹10 each at par. The amount was payable as follows:

Applications were received for 2,40,000 shares and pro-rata allotment was made to all the applicants. All calls were made and were duly received except allotment and first and final call from Aditya who was allotted 800 shares. His shares were forfeited.
Amount Credited to Share Forfeiture Account will be:

Goodluck Ltd. invited applications for issuing 80,000 shares of ₹10 each at a premium of ₹5 per share. The amount was payable as follows:

Applications were received for 1,00,000 shares and pro-rata allotment was made to all the applicants. All calls were made and were duly received except allotment and first and final call from Vidya who was allotted 3,200 shares. Her shares were forfeited.

Amount Credited to Share Forfeiture Account will be:

Zee Ltd. issued shares of ₹20 each at a premium of ₹10 per share. Amounts were payable as follows:

Aryan, a holder of 500 shares failed to pay allotment and first call and his shares were forfeited after the first call. On forfeiture, Calls in Arrears will be:

C Ltd. forfeited 5,000 shares of ₹10 each fully called up, on which the holder has paid only the application & allotment money of ₹7 per share. Out of these, 2,000 shares were re-issued in such a way that ₹8,000 were transferred to capital reserve. Shares were reissued for ______.

As per Section 52 of Companies Act 2013, Securities Premium Reserve cannot be utilised for ______.

Yuvraj Ltd. forfeited 1,000 shares of ₹10 each issued at 20% premium (₹8 Called up) on which application of ₹2 each and allotment of ₹5 each (including premium) has been received. Out of these, ..... shares were reissued for ₹6 per share (₹8 paid up) and ₹2,100 was transferred to Capital Reserve. How many shares were re-issued?

Gati Ltd. forfeited 1,200 shares of ₹100 each, issued at a premium of 30% to Dinesh on which he had paid application money of ₹50 per share and allotment money of ₹50 per share (including premium), for non-payment of first call of ₹10 per share. Out of these, certain shares were re-issued as fully paid for ₹90 per share and ₹30,000 were transferred to Capital Reserve. How many shares were reissued?

Elite Ltd. invited applications for issuing 2,00,000 shares of ₹50 each at a premium of ₹15 per share. The amount was payable as follows:

Applications were received for 3,00,000 shares and pro-rata allotment was made to all the applicants. All calls were made and were duly received except allotment and first and final call from Rashmi who applied for 600 shares. Her shares were forfeited.
Amount Credited to Share Forfeiture Account will be:

X Ltd. issued a prospectus inviting applications for 10,000 shares of ₹50 each at a premium of ₹20 per share, payable as follows:

A shareholder holding 1,000 shares failed to pay the first call and second & final call money and his shares were forfeited after the final call.
In the entry for forfeiture of shares, Share Capital Account will be debited with:

Which one of the following items is not a part of subscribed capital?

X Ltd. forfeited 400 shares of ₹10 each issued at a premium of 40% to Kiran who had applied for 480 shares. After having paid ₹6 (including ₹2 premium) on application, she did not pay allotment and first and final call. The amount to be Credited to ‘Forfeited Shares Account’ will be:

X Ltd. purchased the following assets from Y Ltd.:

Payment was made 20% by Cheque and the remaining amount by equity shares of ₹10 each, ₹6 paid.

Number of equity shares issued will be:

Gupta Ltd. forfeited 4,000 shares of ₹10 each for non-payment of Final Call of ₹3 per share. Out of these, 3,000 shares were re-issued as fully paid up in such a way that ₹9,000 were transferred to capital reserve. Shares were re-issued for ______.

X Ltd. forfeited 1,000 shares of ₹10 each, issued at 30% premium (to be paid at the time of allotment) for non-payment of first call of ₹2 per share. The second and final call of ₹3 has not yet been called. Out of these, 600 shares were re-issued as ₹7 paid up for ₹7 per share.
Amount transferred to Capital Reserve Account will be:

X Ltd. invited applications for issuing 2,00,000 shares of ₹100 each at a premium of ₹20 per share. The amount was payable as follows:

Applications were received for 3,00,000 shares and pro-rata allotment was made to all the applicants. All calls were made and were duly received except allotment and first and final call from Tina who had applied for 2,400 shares. Her shares were forfeited.
Amount Credited to Share Forfeited Account will be:

Z Ltd. invited applications for issuing 40,000 equity shares of ₹100 each at a premium of ₹25 per share. The amount was payable as follows:

Gayatri, a shareholder holding 200 shares, did not pay the first and second and final call and her shares were forfeited after the second and final call.
Calls in Arrears Account will be Credited by:

Surya Vanaspati issued prospectus inviting applications for 42,500 equity shares of ₹100 each payable as ₹10 on application, ₹20 on allotment, ₹30 on first call and balance on second and final call.
Applications were received for ₹40,000 shares. Suresh to whom 1,600 shares were allotted failed to pay final call money and these shares were forfeited. Of the forfeited shares, 600 shares were reissued to Mahesh, credited as fully paid for ₹95 per share.
Subscribed and Fully Paid Capital will be:

Shiva Ltd. forfeited 4,000 shares of ₹10 each, ₹7 called up, issued at a premium of 20% (to be paid at the time of allotment) for non-payment of first call of ₹2 per share. Out of these, 3,000 shares were re-issued as ₹7 paid up for ₹5 per share.
Amount transferred to Capital Reserve Account will be:

Z Ltd. forfeited 2,000 shares of ₹10 each, ₹7 called up, issued at a premium of 20% (to be paid at the time of allotment) for non-payment of allotment money of ₹4 per share (including premium) and first call of ₹2 per share. Out of these, 1,500 shares were re-issued as ₹7 paid up for ₹6 per share. Amount transferred to Capital Reserve will be:

Happy Garments Ltd. invited applications for issuing 1,00,000 shares of ₹10 each at a premium of ₹3 per share. The amount was payable as follows:

Applications were received for 1,50,000 shares. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. All calls were made and were duly received except allotment and first and final call from Vishesh who was allotted 300 shares. His shares were forfeited.
Amount Credited to Share Forfeiture Account will be:

R Ltd. forfeited 5,000 shares of ₹10 each issued at 10% premium to Shreya (₹9 called up) on which she did not pay ₹3 of allotment (including premium) and first call of ₹2. Out of these, ₹3,000 shares were re-issued as fully paid up for ₹8 per share.
Amount transferred to Capital Reserve will be:

Yuvraj Sports Ltd. forfeited 5,000 Equity Shares of ₹10 each issued at a premium of ₹5 per share for non-payment of allotment money of ₹7 per share (including premium ₹3 per share) and the first and final call of ₹5 per share (including premium ₹3). Out of these, 2,000 Equity Shares were subsequently re-issued at a premium of ₹5 per share.
Amount Credited to Capital Reserve will be:

C Ltd. forfeited 1,000 shares of ₹100 each, issued at a premium of ₹5 per share (to be paid at the time of allotment) for non-payment of a first call of ₹20 per share. The second and final call of ₹20 has not yet been called. Out of these, 700 shares were re-issued as fully paid-up at a discount of ₹10 per share.
Amount transferred to Capital Reserve will be:

Star Ltd. invited applications for issuing 2,00,000 shares of ₹10 each at par. The amount was payable as follows:

Applications were received for 2,50,000 shares. Applications for 50,000 shares were made full allotment; Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. All calls were made and were duly received except allotment and first and final call from Jiya who was allotted 300 shares under pro-rata category. Her shares were forfeited.

Amount Credited to Share Forfeiture Account will be:

Atul Ltd. invited applications for issuing 1,00,000 equity shares of ₹50 each at a premium of ₹10 per share. The amount was payable as follows:

Gopal, a shareholder holding 400 shares, did not pay the allotment and first call money and his shares were forfeited after first call.
Share Forfeiture Account will be Credited by:

X Ltd. issued a prospectus inviting applications for 1,10,000 equity shares. The company received applications for 1,00,000 shares. During the first year, ₹8 per share were called. Shyam holding 2,000 shares did not pay the first call of ₹2 per share. Shyam's shares were forfeited after the first call and later on 1,500 of the forfeited shares were re-issued at ₹7 per share, ₹8 called up.
Subscribed but not fully paid Capital will be:

Raghu Ltd. forfeited, 3,000 shares of no each, issued at 30% premium for non-payment of allotment money of ₹5 per share (including premium) and first call of ₹2 per share. The second and final call of ₹2 has not yet been called. Out of these, 1,000 shares were re-issued as fully paid up for ₹12 per share.
Amount transferred to Capital Reserve will be:

Z Limited issued 20,000 shares of ₹100 each. The due amount was received except for 500 shares on which ₹75 per share was received. These 500 shares were forfeited and 300 shares were reissued for ₹60 each fully paid-up.
Balance in Forfeited Shares Account will be: