1.PK Ltd. made an issue of 10,00,000 equity shares of Rs. 10 each, payable Rs. 2 on application, Rs.4 on allotment and Rs. 4 on call. All the shares are subscribed and amounts duly received. Pass journal entries to give effect to these.
2. AB & Co. Ltd. issued 5,00,00,000 Equity shares of Rs. 10 each at a premium of Rs. 4 per share payable Rs. 1 per share on application, Rs. 6 per share on allotment (including premium), Rs. 3 on first call and the balance on final call. The shares were all subscribed and all money due was received except the first call money on 1,00,000 shares and the Final call money on 1,50,000 shares. Give the Cash Book and Journal entries to record the above transactions.
3. B Ltd issued 2,000 shares of Rs. 100 each at a premium of 10% payable as follows: On application Rs. 20 (1st April 2014) . On allotment Rs. 40 (including premium) (1st June 2014) . On First Call Rs. 30 (1st July 2014). On Second & Final call Rs. 20 (1st Aug 2014). Applications were received for 1,800 shares and the directors made allotment in full. One shareholder to whom 40 shares were allotted paid the entire balance on his share holdings with allotment money and another share holder did not pay allotment and 1st call money on his 60 shares but which he paid with final call. Interest should be received @ 5% p.a. on calls-in-arrears and interest should be paid @ 6% p.a. on calls in Advance (as per Articles of the company).
4. A limited Company was registered with a capital of Rs. 5,00,000 in share of Rs. 100 each and issued 2,000 such shares at a premium of Rs. 20 per share, payable as Rs. 20 per share on application, Rs. 50 per share on allotment (including premium) and Rs. 20 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 holding of 30 shares, and another shareholder holding 100 shares failed to pay the first call money. Required: Give Journal entries to record the above transactions.
5. B Ltd purchase the assets of Rs. 10,80,000 from C Ltd. The consideration was payable in fully paid equity shares of Rs. 100 each. Required: Show the necessary journal entries in books of B Ltd. assuming that — a. Such shares are issued at par
b. Such shares are issued at premium of 20%
6. On 1st May 2014 Superman Ltd. issued 5,000 Equity Shares of Rs. 100 each payable as follows: Rs.. On application 20 On 1st Call 20 (Last date fixed for payment 31st July) On allotment 30 On Final Call 30 (Last date fixed for payment 30th August) Applications were received on 15th May 2014 for 6,000 shares and allotment was made on 1st June 2014. Applicants for 2,500 shares were allotted in full, those for 3,000 shares were allotted 2,500 shares and applications for 500 shares were rejected. M2S COMMERCE JAI SHREE SHYAM :: JAI MATA DI
Balance of amount due on allotment was received on 15th June. The calls were duly made on 1st July, 2014 and 1st August 2014 respectively. One shareholder did not pay the 1st Call money on 150 shares which he paid with the final call together with interest at 5% p.a. Another shareholder holding 100 shares did not pay the final call money till end of the accounting year which ends on 31st October.
7.Priyanka Industries Ltd. has an authorised capital Rs. 2,00,000 divided into shares of Rs. 100 each. Of these, 600 shares were issued as fully paid for payment of machinery purchased from Z Ltd. 800 shares were subscribed for by the public and during the first year Rs. 50 per share was called up payable Rs. 20 on application, Rs. 10 on allotment, Rs. 10 on the first call and Rs. 10 on second call. The amounts received in respect of these shares were as follows:-
On 600 Shares Full amount called up
On 125 Shares Rs. 40 Per Share
On 50 Shares Rs. 30 Per Share
On 25 Shares Rs. 20 Per Share
8. The directors forfeited the 75 shares, on which less than Rs. 40 per share had been paid. Required: Give Journal Entries recording the above transactions (including cash transactions) and show how Share Capital would appear in the Balance-Sheet of the Company, in accordance with Part 1 of Schedule III to the Companies Act.
9. SOS Limited issued a prospectus inviting applications for 6,000 shares of Rs. 10 each at a premium of Rs. 2 per share, payable as follows; On application Rs. 2 per share; On allotment Rs. 5 per share (including premium): On 1st call Rs. 3 per share; On Second and Final Call Rs. 2 per share., Applications were receive for 9,000 shares and allotment was made prorate to the applicants of 7,500 shares, the remaining applicants were refused allotment. Money overpaid on applications were applied towards sums due on allotment. D to whom 100 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited. Z, the holder of 200 shares, failed to pay both the calls, and his shares were forfeited after the second and final call. Of the shares forfeited 200 shares were sold to C credited as fully paid up for Rs. 8.50 per share, the whole of D’s shares being included.
10. Alpha Ltd issued a prospectus inviting applications for 2,000 shares of Rs. 10 each at a premium of Rs. 2 per share, payable as follows: On Application Rs. 2, On Allotment Rs. 5 (including premium) On First Call Rs. 3, On Second & Final Call Rs. 2 Applications were received for 3,000 shares and pro rata allotment was made on the applications for 2,400 shares. It was decided to utilise excess application money towards the amount due on allotment. Mohit, to whom 40 shares allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited. Jagat, the holder of 60 shares failed to pay the two calls and on his such failure, his shares M2S COMMERCE JAI SHREE SHYAM :: JAI MATA DI
were forfeited. Of the shares forfeited, 80 shares were sold to Rishav credited as fully paid for Rs. 9 per share, the whole of Mohit’s shares being included. Required: Give Journal Entries to record the above transactions (including cash transactions)
11. Hero Limited issued 10,000 equity shares of Rs. 100 each at premium of Rs. 25 per share. Under the terms of the issue, the shares were to be paid for as follows: Rs. 2015 January 1, on application (including Rs. 25 premium on issue per share) 50 February 1, on allotment 50 April 1, balance of 25
The issue was oversubscribed. The applications received are summarised below:
One of the conditions of the issue was that amounts over-paid on application were to be retained by the company and used in reduction of further sums due on shares allotted. All surplus contributions were refunded on 1st February, 2014. Ramesh who had subscribed 100 on an application for 200 shares was unable to meet the claim due on April 1. On May 5, the directors forfeited his shares. All other shareholders paid the sums requested on the due dates. On June 10, 2014 the directors re-issued the forfeited shares as fully paid to Mohan, on receiving a payment of Rs. 10,500. To prepare a statement as on February 1, 2014, showing the over-payment, under-payment to in respect of category of applicants: and To show how the above transactions would appear in the journal of the company.
12. JK Ltd is a company with an authorized capital of Rs.10 lacs in equity shares of Rs.10 each, of which 600000 shares had been issued and fully paid on 30th June, 2018. The company proposed to make a further issue of 100000 of these Rs. 10 shares at a price of Rs.14 each the arrangements for payment being: Rs. 2 per share payable on application, to be received by 1st July 2018. Allotment to be made on 10th July and a further Rs.5 per shares (including the premium) to be payable. The final call for the balance to be made, and the money received by 31st January 2019. Applications were received for 355000 shares and were dealt with as follows: Applicants for 5000 shares received allotment in full. Applicants for 30000 shares received an allotment of one share for every 2 applied for, no money was returned to the applicant, the surplus on application being used to reduce the amount due on allotment. Applicants for 320000 shares received an allotment of one share for every four applied for, the money due on allotment was retained by the company, the excess being returned to the applicant. The money due on final call was received on the due date. You are required to record these transactions in the journal of JK Limited.
