JAIN INTERNATIONAL RESIDENTIAL SCHOOL

SUMMER VACCATION HOMEWORK

Class: XII 2024 - 2025 Sub : Accountancy (055)

1. Rupak Ltd. issued 10,000 shares of Rs.100 each payable Rs.20 per share on application, Rs.30 per
share on allotment and balance in two calls of Rs.25 per share. The application and allotment money
were duly received. On first call, all members paid their dues except one member holding 200 shares,
while another member holding 500 shares paid for the balance due in full. Final call was not made.
Give journal entries and prepare cash book.

2. Eastern Company Limited, with an authorised capital of Rs.10,00,000 is divided into equity shares of
Rs.10 each, issued 50,000 equity shares at a premium of Rs.3 per share payable as follows:
On Application Rs.3 per share
On Allotment (including premium) Rs.5 per share
On first call (due three months after allotment) Rs.3 per share and the balance as and when required.
Applications were received for 60,000 shares and the directors allotted the shares as follows:
(a) Applicants for 40,000 shares received in full.
(b) Applicants for 15,000 shares received an allotment of 8,000 shares.
(c) Applicants for 5000 shares received on allotment of 2000 shares, excess money being returned.
All amounts due on allotment were received.
The first call was duly made and the money was received with the exception of
the call due on 100 shares. Give journal entries.

3. Bansal Heavy Machine Ltd. purchased machine worth Rs.3,80,000 from Handa Trader. Payment was
made as Rs.50,000 cash and remaining amount by issue of equity shares of the face value of Rs. 100
each fully paid at an issue price of Rs.110 each.
Give journal entries to record the above transaction.

4. Arushi Computers Ltd. issued 10,000 equity shares of Rs.100 each at 10% premium. The net amount
payable as follows:
On application Rs.20; On allotment Rs.50 (Rs.40 + premium Rs.10); On first call Rs.30;
On final call Rs.10
A shareholder holding 200 shares did not pay final call. His shares were forfeited. Out of these 150
shares were reissued to Ms. Sonia at Rs.75 per share.
Give journal entries in the books of the company.

5. Prince Limited issued a prospectus inviting applications for 20,000 equity shares of Rs.10 each at a
premium of Rs.3 per share payable as follows:
With Application Rs.2; On Allotment (including premium) Rs.5; On First Call Rs.3
On Second Call Rs.3.
Applications were received for 30,000 shares and allotment was made on pro-rata basis. Money
overpaid on applications was adjusted to the amount due on allotment.
Mr. Mohit whom 400 shares were allotted, failed to pay the allotment money and the first call, and his
shares were forfeited after the first call. Mr. Joly, whom 600 shares were allotted, failed to pay for the
two calls and hence, his shares were forfeited.
Of the shares forfeited, 800 shares were reissued to Supriya as fully paid for Rs.9 per share, the whole
of Mr. Mohit’s shares being included.
Record journal entries in the books of the Company.

6. Amisha Ltd. invited applications for 40,000 shares of Rs.100 each at a premium
of Rs.20 per share. Amount payable on application Rs.40; on allotment Rs.40 (Including premium): on
first call Rs.25 and second and final call Rs.15.
Applications were received for 50,000 shares and allotment was made on pro-rata basis. Excess money
on application was adjusted against the sums due on allotment.
Rohit to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited
after allotment. Ashmita, who applied for 1,000 shares failed to pay the two calls and her shares were
forfeited after the second call. Of the shares forfeited, 1,200 shares were sold to Kapil for Rs.85 per
share as fully paid, the whole of Rohit’s shares being included.
Record necessary journal entries.

7. Journalise the following transactions in the books Bhushan Oil Ltd.:

(a) 200 shares of Rs.100 each issued at a premium of Rs.10 were forfeited for the non-payment of
allotment money of Rs.60 per share. The first and final call of Rs.20 per share on these shares were not
made. The forfeited shares were reissued at Rs.70 per share as fully paid-up.
(b) 150 shares of Rs.10 each issued at a premium of Rs.4 per share payable with allotment were
forfeited for non-payment of allotment money of Rs.8 per share including premium. The first and final
calls of Rs.4 per share were not made. The forfeited shares were reissued at Rs.15 per share fully paid-
up.
(c) 400 shares of Rs.50 each issued at par were forfeited for non-payment of final call of Rs.10 per
share. These shares were reissued at Rs.45 per share fully paid-up.

8. Amit holds 100 shares of Rs.10 each on which he has paid Re.1 per share as application money.
Bimal holds 200 shares of Rs.10 each on which he has paid Re.1 and Rs.2 per share as application and
allotment money, respectively.
Chetan holds 300 shares of Rs.10 each and has paid Re.1 on application, Rs.2 on allotment and Rs.3 for
the first call. They all failed to pay their arrears and the second call of Rs.2 per share and the directors,
therefore, forfeited their shares. The shares are reissued subsequently for Rs.11 per share as fully paid.
Journalise the transactions.
9. A. Ltd. issued 4,000, 9% debentures of Rs. 100 each on the following terms:
Rs. 20 on Application; Rs.20 on Allotment; Rs.30 on First call; and Rs.30 on Final call.
The public applied for 4,800 debentures. Applications for 3,600 debentures were accepted in full.
Applications for 800 Debentures were allotted 400 debentures and applications for 400 Debentures
were rejected. All money called and duly received. Record necessary journal entries.

10. B. Ltd. purchased assets of the book value of Rs. 4,00,000 and took over the liability of Rs. 50,000
from Mohan Bros. It was agreed that the purchase consideration, settled at Rs. 3,80,000, be paid by
issuing debentures of Rs. 100 each. What Journal entries will be made in the following three cases, if
debentures are issued: (a) at par; (b) at 10% discount; (c) at premium of 10%. It was agreed that any
fraction of debentures be paid in cash.

11. X. Ltd. issued 15,000, 10% debentures of Rs. 100 each. Give journal entries in each of the
following cases:
(i) The debentures are issued at a premium of 10%;
(ii) The debentures are issued at a discount of 5%;
(iii) The debentures are issued as a collateral security to bank against a loan of Rs. 12,00,000;
(iv) The debentures are issued to a supplier of machinery costing Rs. 13,50,000.

12. Journalise the following:

(i) A debenture issued at Rs. 95, repayable at Rs. 100;
(ii) A debenture issued at Rs. 95, repayable at Rs. 105; and
(iii) A debenture issued at Rs. 100, repayable at Rs. 105;
The face value of debenture in each of the above cases is Rs. 100.

13. A listed company issues the following debentures:

(i) 10,000, 12% debentures of Rs. 100 each at par but redeemable at premium of 5% after 5 years;
(ii) 10,000, 12% debentures of Rs. 100 each at a discount of 10% but redeemable at par after 5 years;
(iii) 5,000, 12% debentures of Rs. 1000 each at a premium of 5% but redeemable at par after 5 years;
(iv) 1,000, 12% debentures of Rs. 100 each issued to a supplier of machinery costing Rs. 95,000.
The debentures are repayable after 5 years; and
(v) 300, 12% debentures of Rs. 100 each as a collateral security to a bank which has advanced a loan of
Rs. 25,000 to the company for a period of 5 years
Pass the journal entries to record the: (a) issue of debentures; and (b) repayment of debentures after the
given period.

14. B. Ltd. issued 1,000, 12% debentures of Rs. 100 each on April 01, 2014 at a discount of 5%
redeemable at a premium of 10%.
Give journal entries relating to the issue of debentures and debentures interest for the period ending
March 31, 2015 assuming that interest is paid half-yearly on September 30 and March.
15. T. Ltd. offered 2,00,000, 8% debenture of Rs. 500 each on June 30, 2014 at a premium of 10%
payable as Rs. 200 on application (including premium) and balance on allotment, redeemable at par
after 8 years but applications are received for 3,00,000 debentures and the allotment is made on
pro-rata basis. All the money due on application and allotment was received. Record necessary
entries regarding issue of debentures.

16. The Orient Company Limited offered for public subscription 20,000 equity shares of Rs.10 each
at a premium of 10% payable at Rs.2 on application; Rs.4 on allotment including premium; Rs.3 on
First Call and Rs.2 on Second and Final call. Applications for 26,000 shares were received.
Applications for 4,000 shares were rejected. Pro-rata allotment was made to the remaining applicants.
Both the calls were made and all the money were received except the final call on 500 shares which
were forfeited. 300 of the forfeited shares were later reissued as fully paid at Rs.9 per share. Give
journal entries.