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Work Sheet - Issue of Share

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31 views1 page

Work Sheet - Issue of Share

Uploaded by

himanshusinghyt93
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We take content rights seriously. If you suspect this is your content, claim it here.
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PRAMOD KUMAR CLASSES FOR ACCOUNTS 9818386161

Work Sheet - Issue of Share


1. Annex Ltd. issued 50,000 shares of Rs.10 each at a premium of 10% to the public for subscription. The whole amount
was payable on application. Applications were received for 1,50,000 shares and the board decided to allot shares to all
shareholders on pro-rata basis. Pass necessary journal entries for the above transactions in the books of Annex Ltd.

2. Light Lamps Ltd. issued 1,00,000 shares of ₹10 each as fully paid-up to the promoters for their services to set-up the
company. It also issued 4,000 shares of ₹10 each credited as Fully Paid-up to the underwritten of shares for their
services. Journalise these transactions.

3. X Ltd. forfeited 200 shares of ₹ 10 each (₹8 called-up) issued at a premium of ₹2 per share to Rahul on which he had
paid application money of ₹5 per share, for non-payment of allotment money of ₹5 per share (including premium). Out
of these, 140 shares were reissued to Sanjay for t ₹7 per share as ₹8 called-up for ₹7 per share. Give necessary Journal
entries relating to forfeiture and issue of share.

4. Raunit Styles Ltd. was registered with a capital of Rs.85,00,000 divided into equity shares of Rs.100 each. The company
invited applications for issuing 45,000 shares. The amount was payable as Rs.25 on application, Rs.35 on allotment, Rs.25
on first call and balance on final call. Applications were received for 42,000 shares and allotment was made to all the
applicants. Kavi, to whom 3,300 shares were allotted, failed to pay both the calls. His shares were forfeited. Present the
Share Capital in the Balance Sheet of the company as per Schedule III of the Companies Act, 2013.

5. DF Ltd. invited applications for issuing 50,000 shares of Rs.10 each at a premium of Rs.2 per share. The amount was
payable as follows:
On Application : Rs.3 per share (including premium Rs.1)
On Allotment : Rs.3 per share (including premium Rs.1)
On First call : Rs.3 per share
On Second and Final Call : Balance amount, Application for 70,000 shares were received. Allotment was made on the
following basis. Applications for 5,000 shares – Full; Applications for 50,000 shares – 90% and Balance of the
applications were rejected. Rs. 1,11,000 were received on account of allotment. The amount of allotment due from the
shareholders to whom shares were allotted on prorata basis was fully received. A few shareholders to whom shares
were allotted in full, failed to pay the allotment money. Rs.1,20,000 were received on first call. Directors decided to
forfeit those shares on which allotment and call money was due. Half of the forfeited shares were re-issued @ Rs.8 per
share fully paid up. Final call was not made. Pass the necessary journal entries for the above transactions in the book of
DF Ltd.

6. Ruchi Ltd. issued for public subscription 40,000 Equity Shares of ₹10 each at a premium of ₹2 per share payable as:
On Application ₹ 2 per share,
On Allotment ₹5 per share (including premium),
On First Call ₹2 per share,
On Second and Final Call ₹3 per share.
Applications were received for 60,000 shares. Allotment was made on pro rota basis to the applicants for 48,000 shares,
the remaining applications being refused. Money overpaid on application was utilised towards sums due on allotment.
Ram to whom 1,600 shares were allotted failed to pay the allotment money and Shyam to whom 2,000 shares were
allotted failed to pay the two calls. These shares were subsequently forfeited after the second and final call was made.
All the forfeited shares were reissued as fully paid-up @₹8 per share.
Give necessary Journal entries for the above transactions.

BRANCHES AT:
(1) SH-296 1st floor, Shastri Nagar, Opp. Uttam School Gzb. (2) Road No.1 Near Kanak farms, Govindpuram, Gzb.

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