CLASS - 12

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ACCOUNTANCY
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ISSUE
OF
SHARES
Q1. A Ltd. was a registered with an authorised/nominal share capital of Rs.5,00,000 divided into shares of Rs.10 each. It invited public to apply
for 30,000 shares of Rs.10 each payable as: Rs.3 on application, Rs.2 on allotment, Rs.4 on 1st call & Rs.1 on 2nd call. All shares were
subscribed & amount was duly received. Journalise & prepare Notes to Accounts.

SECURITIES PREMIUM RESERVE (SPR)

Q2. B Ltd. issued 40,000 shares of Rs.10 each at 20% premium payables as: Rs.2 on application, Rs.5 on allotment (including premium),
Rs.4 on 1st call and balance on 2nd call. Journalise & prepare Notes to Accounts.

Q3. C Ltd. issued 30,000 shares of Rs.10 each at 20% premium. Whole amount was payable at the time of Application.
Journalise & prepare Notes to Accounts.

UNDER SUBSCRIPTION

Q4. D Ltd. invited public to apply for 40,000 shares of Rs.10 each at 20% premium payable as follows: Rs.5 on application, Rs.3 on allotment
(including premium) & balance in two equal calls. Public subscribed for 38,000 shares. Journalise & prepare Notes to Accounts.

CALLS IN ARREARS

Q5. E1 Ltd. issued 40,000 shares of Rs.10 each at 10% premium payable as: Rs.3 on application, Rs.3 on allotment, Rs.3 on 1st call & balance
on 2nd call. Ram holding 1,000 shares didn’t pay both the calls. Journalise & prepare Notes to Accounts.

Q6. E2 Ltd. invited public to apply for 50,000 shares of Rs.10 each at a 20% premium payable as: Rs.5 on application (incl. premium),
Rs.3 on allotment & balance in two equal calls. Public subscribed 45,000 shares. Ram holding 2,000 shares didn’t pay both the calls.
Shyam holding 1,000 shares did not pay the 2nd call. Journalise & prepare Notes to Accounts.

Q7. E3 Ltd. issued 40,000 shares of Rs.10 each at a premium of 20% premium payable as: Rs.3 on application (incl. premium of Rs.1), Rs.4 on
allotment (incl. premium of Rs.1), Rs. 3 on 1st call and balance on 2nd call. Ram holding 1,000 shares didn’t pay 1st call when demanded
but he paid it at the time of 2nd call. Journalise & prepare Notes to Accounts.

CALLS IN ADVANCE

Q8. F1 Ltd. issued 30,000 shares of Rs.10 each payable as: Rs.3 on application, Rs.2 on allotment, Rs.4 on 1st call & Rs.1 on 2nd call. Ram holding
2,000 shares paid both the calls on allotment. Journalise & prepare Notes to Accounts.

Q9. F2 Ltd. issued 40,000 shares of Rs.10 each payable as: Rs.3 on application, Rs.2 on allotment, Rs.4 on 1st call & Rs.1 on 2nd call. Ram holding
2,000 shares paid both calls on allotment. Shyam holding 1,000 shares paid 2nd call at the time of 1st call. Journalise & prepare Notes
to Accounts.

Q10. F3 Ltd. issued 20,000 shares of Rs.100 each payable as: Rs.3 on application, Rs.2 on allotment, Rs.4 on 1st call & balance when needed.
Ram holding 1,000 shares paid his entire amount due at the time of 1st call. Journalise & prepare Notes to Accounts.

Q11. G Ltd. issued 30,000 shares of Rs.10 each payable as: Rs.3 on application, Rs.2 on allotment, Rs.4 on 1st call & balance on 2nd call.
Ram, a shareholder, holding 4,000 shares didn’t pay both the calls. Shyam, another shareholder, holding 3,000 shares paid both the
calls on allotment. Journalise and prepare Notes to Accounts.
 FORFEITURE AND RE-ISSUE

Q12. H1 Ltd. issued 40,000 shares of Rs. 10 each payable as: Rs.3 on application, Rs.2 on allotment, Rs.4 on 1st call and Rs.1 on 2nd call. Ram
holding 3,000 shares didn’t pay both the calls. His shares were forfeited & reissued at Rs.9 as fully paid up. Journalise & prepare
Notes to Accounts.

Q13. H2 Ltd. issued 40,000 shares of Rs.10 each payable as: Rs.3 on application, Rs.2 on allotment, Rs.4 on 1st call & Rs.1 on 2nd call. Ram holding
3,000 shares didn’t pay both the calls & his shares were forfeited. Of them, 1,000 shares were reissued at Rs.9 as fully paid up.
Journalise & prepare Notes to Accounts.

Q14. H3 Ltd. issued 60,000 shares of Rs.10 each payable as: Rs.4 on application, Rs.3 on allotment, Rs.2 on 1st call and Rs.1 on 2nd call. Ram
holding 3,000 shares didn’t pay allotment & his shares were forfeited immediately. Shyam holding 2,000 shares didn’t pay 1st call & his
shares were forfeited immediately. Mohan holding 1,000 shares didn’t pay 2nd call & his shares were also forfeited immediately. All the
forfeited shares were reissued at Rs.9 as fully paid up. Journalise & prepare Notes to Accounts.

Q15. H4 Ltd. issued 50,000 shares of Rs.10 each at 20% premium payable as: Rs.3 on application, Rs.4 on allotment (incl. premium) and Rs. 5 on
first & final call. Ram holding 3,000 shares didn’t pay allotment & 1st call and his shares were forfeited. Journalise & prepare Notes to
Accounts.

Q16. H5 Ltd. issued 20,000 shares of Rs.10 each at 20% premium payable as: Rs.3 on application (incl. premium), Rs.4 on allotment, Rs.2 on 1st
call and balance when needed. Ram holding 3,000 shares didn’t pay 1st call. His shares were forfeited & reissued at Rs.6. Journalise &
prepare Notes to Accounts.

JOURNALISE FOR FORFEITURE & REISSUE OF SHARES (Short Questions)

Q17. i1 Ltd. forfeited 500 shares of Rs.10 each, fully called up, for non-payment of 1st call of Rs.2 and 2nd call of Rs.2. All the forfeited shares
were reissued at Rs.8 as fully paid up.

Q18. i2 Ltd. forfeited 800 shares of Rs.10 each issued at 20% premium (to be paid at the time of allotment) for non-payment of 1st call of Rs.2
and 2nd call of Rs.1. All the forfeited shares were reissued at Rs.10 as fully paid up.

Q19. i3 Ltd. forfeited 900 shares of Rs.10 each issued at 20% premium (to be paid at the time of allotment) for non-payment of allotment of
Rs.5, 1st call of Rs.2 and 2nd call of Rs.1.

Q20. i4 Ltd. forfeited 600 shares of Rs.10 each for non-payment of allotment of Rs.3, 1st call of Rs.2 and 2nd call of Rs.1. Of them, 400 shares
were reissued at Rs.9 as fully paid up.

Q21. i5 Ltd. forfeited 800 shares of Rs.10 each on which only application of Rs.3 was received. Of them, 500 shares were reissued at Rs.11 as
fully paid up.

Q22. i6 Ltd. forfeited 600 shares of Rs.10 each for non-payment of allotment of Rs.3, 1st call of Rs.2 and 2nd call of Rs.2. Out of them, 400
shares were reissued as fully paid up at maximum rate of discount allowed by law.

Q23. i7 Ltd. forfeited 800 shares of Rs.10 each, Rs.7.50 paid, for non-payment of 2nd call of Rs.2.50. Out of them, 600 shares were reissued as
fully paid up in such a way that Rs.2100 were transferred to Capital Reserve.

Q24. i8 Ltd. forfeited 800 shares of Rs.10 each (Rs. 8 called up), for non-payment of 1st call of Rs.2. Of them, 600 shares were reissued for
Rs. 7 as Rs. 8 paid up.

Q25. i9 Ltd. forfeited 900 shares of Rs.10 each, on which Rs.3 on 2nd call has not been called (demanded) and Rs.1 on 1st call has not been
received. Out of them, 300 shares were reissued at Rs.9 as fully paid up.

Q26. i10 Ltd. forfeited 1,000 shares of Rs.10 each (Rs. 7 called up), issued at 20% premium (to be paid at the time of allotment) for non-
payment of 1st call of Rs.2. Out of them, 600 shares were reissued for Rs. 4 as Rs. 7 paid up.

Q27. i11 Ltd. forfeited 800 shares of Rs.10 each, issued at 30% premium, for non-payment of allotment of Rs.5 (including premium) and
1st call of Rs.1. 2nd call of Rs.2 has not been called yet. Of them, 200 shares were reissued at Rs.11 as fully paid up.

Q28. i12 Ltd. forfeited 1,000 shares of Rs.10 each issued at 10% premium (Rs.9 called up) for non-payment of allotment of Rs.3 (including
premium) and 1st call of Rs.2. Out of them, 600 shares were reissued to Ram at Rs.8 as fully paid up and 200 shares were reissued to
Shyam at Rs.11 as fully paid up at different intervals of time.
Q29. i13 Ltd. forfeited 1,000 shares of Rs.20 each issued at a premium of Rs.2 (Rs.18 called up), for non-payment of allotment of Rs.6
(including premium) and 1st call of Rs.4. Out of them, 400 shares were reissued to Mohan at Rs.14 and 300 shares were reissued to
Sohan at Rs.24 as fully paid up at different intervals of time.

MISCELLANEOUS QUESTIONS

Q30. J1 Ltd. issued 10,000 shares of Rs.100 each payable as: Rs.50 on application & allotment, Rs.25 on 1st call and Rs.25 on 2nd call. Ram, a
shareholder, holding 400 shares did not pay 2nd call and his shares were forfeited. Out of them, 300 shares were reissued at Rs.80 as
fully paid up. Journalise & prepare Notes to Accounts.

Q31. J2 Ltd. issued 1,00,000 shares of Rs.10 each at a premium of Rs.10 per share. The amount was payable as follows: Rs.10 on application
(including Rs.5 as premium) and balance on allotment. Ram, a shareholder, holding 300 shares paid his full amount on application.
Shyam, another shareholder, holding 200 shares failed to pay the allotment money. His shares were forfeited & reissued at Rs.4,000
as fully paid up. Journalise & prepare Notes to Accounts.

Q32. K1 Ltd. had an authorised share capital of Rs.7,00,000 divided into shares of Rs.10 each. It issued 30,000 shares to public (Rs.8 called
up), payable as Rs.3 on application, Rs.2 on allotment, Rs.2 on 1st call and Rs.1 on 2nd call. Amount was received on as follows:
On 12,000 shares – full amount called
On 8,000 shares – Rs.7
On 6,000 shares – Rs.5
On 4,000 shares – Rs.3
Directors decided to forfeit those shares on which less than Rs.7 were received. Journalise & prepare Notes to Accounts.

Q33. Journalise for forfeiture & reissue of shares:

K2 Ltd. forfeited 600 shares of Rs.10 each payable as: Rs.2.50 on application, Rs.2 on allotment, Rs.3 on 1 st call and balance on 2nd call.
Ram holding 100 shares paid only application money. Shyam holding 200 shares paid application & allotment only. Mohan holding 300
shares paid application, allotment & 1st call. All of them failed to pay their arrears & the 2nd call. Subsequently, their shares were
forfeited & reissued at a discount of 10%.

Q34. K3 Ltd. issued 10,000 shares of Rs.10 each payable as Rs.3 on application, Rs.3 on allotment, Rs.2 on 1st call and Rs.2 on 2nd call. Ram
holding 100 shares paid application, allotment & 1st call. Shyam holding 200 shares paid application & allotment only. Mohan holding 300
shares paid only application money. All these shares were forfeited. Of them, 200 shares were reissued at 2% discount as fully paid
up. Journalise.

OVER-SUBSCRIPTION & PRO-RATA OF SHARES

Q35. L1 Ltd. invited public to apply for 40,000 shares payable as: Rs.2 on application, Rs.3 on allotment, Rs.4 on 1st call & Rs.1 on 2nd call. Public
applied for 65,000 shares & allotment was made as follows:
Apply Allot
List 1 15,000 0
List 2 10,000 10,000
List 3 40,000 30,000
Pass necessary journal entries for the issue of shares. Excess application money (EAM) is to be adjusted against allotment &
Subsequent calls.

Q36. L2 Ltd. issued 50,000 shares of Rs.10 each payable as: Rs.4 on application, Rs.2 on allotment, Rs.2 on 1st call & Rs.2 on 2nd call. Applications
were received for 80,000 shares & shares were allotted to public on pro-rata basis. Excess application money (EAM) is to be adjusted
against allotment & subsequent calls. Journalise.

Q37. L3 Ltd. invited public to apply for 40,000 shares of Rs.10 each at 30% premium, whole amount payable at the time of application. Public
applied for 50,000 shares and shares were allotted on pro-rata basis. Journalise.

Q38. L4 Ltd. issued 40,000 shares of Rs.10 each payable as: Rs.4 on application, Rs.2 on allotment, Rs.3 on 1st call & Rs. 1 on 2nd call. Public
applied for 70,000 shares and allotment was made as follows:
Apply Allot
List 1 10,000 0
List 2 10,000 10,000
List 3 50,000 30,000
Excess application money (EAM) will be adjusted against allotment & subsequent calls. Journalise.

Q39. L5 Ltd. issued 2,00,000 shares of Rs.10 each at a premium of Rs.5 payable as: on application Rs.4, on allotment Rs.6 (including premium
of Rs.3) and balance on 1st call. Excess application money is to be adjusted against allotment & 1st call. Issue was oversubscribed to
the extent of 80,000 shares. Allotment was made as follows: Applicant of 1,00,000 shares were allotted 30% shares. Applicants of
10,000 shares were rejected. Rest were given full allotment. Journalise.
Q40. L6 Ltd. issued 70,000 shares of Rs.10 each payable as: Rs.4 on application, Rs.3 on allotment & Rs.3 on 1st call.
Applications were received for 1,02,000 shares and allotment was made as follows:
Apply Allot
List 1 50,000 40,000
List 2 50,000 30,000
List 3 2,000 0
Excess application money (EAM) will be adjusted against allotment & subsequent calls. Journalise.

FORFEITURE IN CASE OF OVER-SUBSCRIPTION AND PRO-RATA

Q41. M Ltd. issued 60,000 shares of Rs.10 each payable as: Rs.3 on application, Rs. 2 on allotment, Rs. 4 on 1st call and Rs.1 on 2nd call.
Applications were received for 75,000 shares and shares were allotted as follows:
Apply Allot
List 1 40,000 40,000
List 2 25,000 20,000
List 3 10,000 0
Ram, belonging to List II, was allotted 400 shares. He didn’t pay allotment & both the calls. His shares were forfeited. All the
forfeited shares were reissued at Rs.9 as fully paid up. Journalise.

Q42. N Ltd. issued 20,000 shares of Rs.10 each payable as: Rs.2 on application, Rs.3 on allotment, Rs.4 on 1st call and balance on 2nd call.
Applications were received for 35,000 shares and allotment was made as follows:
Apply Allot
List 1 5,000 0
List 2 5,000 5,000
List 3 25,000 15,000
Ram holding 1,500 shares, belonging to list 3, didn’t pay allotment & both calls. Shyam holding 1,000 shares, belonging to list 2,
didn’t pay both calls. Their shares were forfeited & reissued at Rs.12 as fully paid up. Journalise.

Q43. O1 Ltd. issued 50,000 shares of Rs.10 each payable as: Rs.3 on application, Rs.4 on allotment, Rs.2 on 1st call and balance on 2nd call.
Applications were received for 60,000 shares and allotment was made as follows:
Apply Allot
List 1 10,000 10,000
List 2 20,000 15,000
List 3 30,000 25,000
Ram, belonging to 2nd list, applied for 2,000 shares. He didn’t pay allotment, 1st call & 2nd call and his shares were forfeited.
Of them, 1000 shares were reissued at Rs.8 as fully paid up. Journalise.

Q44. O2 Ltd. issued 1,00,000 shares of Rs.10 each at a premium of Rs.5 payable as: Rs.8 on application (including Rs.3 premium) and Rs.7 on
allotment. Applications were received for 1,50,000 shares and allotment was made as follows:
Apply Allot
List 1 10,000 0
List 2 80,000 60,000
List 3 60,000 40,000
Excess application money (EAM) will be utilised for allotment. X, a shareholder belonging to 2 nd list was allotted 300 shares. He failed
to pay the allotment & his shares were forfeited. Y, another share holder belonging to 3 rd list was allotted 200 shares. He also failed
to pay the allotment & his shares were also forfeited. All the forfeited shares were reissued at Rs.12 as fully paid up. Journalise.

Q45. O3 Ltd. issued 4,00,000 shares of Rs.10 each issued at a premium of Rs.7 payable as: Rs.9 on application & allotment (including premium
of Rs.4) and balance on 1st call. Applications were received for 5,70,000 shares & allotment was made as follows:
Apply Allot
List 1 3,50,000 2,50,000
List 2 2,00,000 1,50,000
List 3 20,000 0
Ram, a shareholder who belongs to 1st list, was allotted 500 shares. He failed to pay the 1st call & his shares were forfeited.
Shyam, another shareholder who belongs to 2nd list was allotted 300 shares. He also failed to pay the 1st call & his shares were also
forfeited. All the forfeited shares were reissued at Rs.15 as fully paid up. Journalise.

Q46. P1 Ltd. issued 2,00,000 shares of Rs.10 each at 20% premium payable as Rs.3 on application, Rs.4 on allotment (including premium), Rs.3 on
1st call and Rs.2 on 2nd call. Applications for 3,00,000 shares were received & shares were allotted on pro-rata basis. Ram, who was
allotted 400 shares, failed to pay the allotment & 1st call. His shares were forfeited immediately. Shyam, who applied for 900 shares,
failed to pay 1st call & 2nd call. His shares were also forfeited.
Of them, 700 shares were reissued at Rs.9 as fully paid up including whole of Ram’s shares. Journalise.
Q47. P2 Ltd. issued 3,00,000 shares of Rs. 10 each at a premium of Rs.4 payable as follows: Rs.4 on application (including Rs.1 premium), Rs.3 on
allotment (including Rs.1 premium), Rs.4 on 1st call (including Rs.1 premium) and Rs.3 on 2nd call (including Rs.1 premium). Applications
were received for 3,80,000 shares & pro-rata allotment was made to 3,50,000 shares.
Ram was allotted 6,000 shares but he failed to pay the allotment & his shares were forfeited immediately. Shyam, another
shareholder who applied for 10,500 shares failed to pay 1st call & 2nd call. His shares were also forfeited. Mohan was allotted 3,000
shares & he failed to pay the 2nd call. Of them 11,000 shares were reissued at Rs.9 as fully paid up including whole of Shyam’s
shares. Journalise.

Q48. Q Ltd. invited applications for 1,00,000 shares of Rs.10 each payable as Rs.2 on application, Rs.3 on allotment & Rs.5 on 1st call.
Applications for 3,00,000 shares were received & shares were allotted on pro-rata basis. Excess Application Money (EAM) will be
adjusted against allotment only. Ram, who applied for 3,000 shares failed to pay his dues. His shares were forfeited & half of his
shares were reissued at Rs.9 as fully paid up. Journalise.

Q49. R Ltd. issued 80,000 shares of Rs.10 at a premium of Rs.4 payable as: Rs.5 on application and Rs.9 on allotment (including premium).
Applications were received for 1,40,000 shares & allotment was made as follows:
Apply Allot
List 1 80,000 60,000
List 2 60,000 20,000
Ram, a shareholder, who applied for 1,200 shares failed to pay his dues & his shares were forfeited. Journalise.

Q50. S Ltd. issued 60,000 shares of Rs.10 each payable as: Rs.2 on application, Rs.3 on allotment & Rs.5 on 1st call. Applications were received
for 92,000 shares and allotment was made as follows:
Apply Allot
List 1 40,000 40,000
List 2 50,000 20,000
List 3 2,000 0
Rs.1,08,000 were realised on allotment and Rs.2,50,000 were realised on 1st call.
Directors decided to forfeit shares on which allotment money was overdue. Journalise.

Q51. T Ltd. issued 1,00,000 shares of Rs.10 each at 20% premium payable as: Rs.3 on application, Rs.3 on allotment (including premium), Rs.4 on
1st call and Rs.2 on 2nd call. Applications were received for 1,58,500 shares. Allotment was made as follows:
Shares Alloted
Allotment in full (Mr. D paid in full on allotment 19,000 shares
in respect of 4,000 shares)
Allotment of 2/3 shares applied for 80,000 shares
Allotment of 1/2 shares applied for 1,000 shares
Allotment money of Rs. 52,500 was returned.
Ram holding 100 shares didn’t pay 2nd call & his shares were forfeited and reissued at Rs.9 as fully paid up. Journalise.

Q52. U1 Ltd. issued 1,00,000 shares of Rs.10 each payable as: Rs. 3 on application, Rs.4 on allotment & Rs.3 on 1st call. Issue was oversubscribed
by 3 times. Allotment was made as follows:
Application for 20% were rejected.
Apply Allot
List 1 1,60,000 80,000
List 2 80,000 20,000

Excess application money (EAM) will be adjusted on allotment & 1st call. Ram, who belonged to 1st list, applied 320 shares. He failed to
pay the 1st call & his shares were forfeited. All the forfeited shares were reissued at Rs.15 as fully paid up.
Journalise using Calls in arrear a/c & Calls in Advance a/c.

Q53. U2 Ltd. issued 54,000 shares of Rs.100 each payable as: Rs.50 on Application, Rs.10 on allotment & Rs.40 on 1st & final call. Applications
were received for 80,000 shares and allotment was made was follows:
Apply Allot
List 1 14,000 14,000
List 2 66,000 40,000

Excess application money (EAM) will be adjusted on allotment & 1st call. Ram, who was allotted 1,200 shares, belonged to 1st list. He
paid his 1st call at the time of allotment. Shyam, who was allotted 400 shares, belonged to 2nd list. He didn’t pay his dues. His shares
were forfeited & reissued at Rs.110 as fully paid up. Journalise using Calls in Arrear a/c and Calls in Advance a/c.
Q54. U3 Ltd. issued 1,00,000 shares of Rs.10 each at 10% premium payable as: Rs.3 on application, Rs.3 on allotment (including premium), Rs.3
on 1st call and Rs.2 on 2nd call. Applications were received for 1,60,000 shares & shares were allotted as follows:

Apply Allot
List 1 90,000 40,000
List 2 50,000 40,000
List 3 20,000 20,000

EAM will be adjusted on allotment & 1st call. Ram, who belonged on 2nd list, applied for 1500 shares. He failed to pay his allotment, 1st
call & 2nd call and his shares were forfeited. Shyam, who belonged to 1st list, applied for 1,800 shares. He was unable to pay his 1st call
& 2nd call and his shares were also forfeited. All the forfeited shares were reissued at Rs.7 as fully paid up. Journalise using Calls in
Arrear a/c and Calls in Advance a/c.

Q55. U4 Ltd. issued 80,000 shares of Rs.10 each payable as Rs.2 on application, Rs. 3 on allotment, Rs. 2 on 1st call & Rs.3 on 2nd call.
Applications were received for 1,20,000 shares. Excess application money (EAM) will be adjusted on allotment only. Allotment was
made as follows:

Apply Allot
List 1 20,000 20,000
List 2 40,000 10,000
List 3 60,000 50,000

Ram, belonging to 3rd list, applied for 2400 shares couldn’t pay allotment. His shares were forfeited immediately.
Shyam, belonging to 2nd list, allotted 500 shares didn’t pay 1st call.
50% of Ram’s shares were reissued as Rs.7 paid up for Rs.9. 2nd call is not made by company.
Journalise using Calls in Arrear a/c and Calls in Advance a/c.

Q56. V Ltd. issued 1,00,000 shares of rs.10 each at a premium of Rs.5 payable as Rs. 5 on application, Rs. 7 on allotment (including premium
Rs.5) and Rs. 3 on 1st call. Applications were received for 1,50,000 shares and pro-rata allotment was made.
Ram, who applied for 1,800 shares failed to pay allotment and 1st call. His shares were for feited and reissued at Rs.8 as fully paid up.
Journalise.

Q57. W1 Ltd. issued 40,000 shares of Rs. 10 each payable as follows :

Rs. 2.50 on Application payable on 1st May, 2015
Rs. 2.50 on Allotment payable on 1st July, 2015
st
Rs. 2.00 on 1 call payable on 1st Oct., 2015
Rs. 3.00 on final call payable on 1st Feb, 2016
Journalise.

Q58. W2 Ltd. same question as above but journalise using Joint Application and Allotment a/c.

Q59. X1 Ltd. issued 60,000 shares of Rs. 10 each payable as follows :

Rs. 3 on Application
Rs. 2 on Allotment payable on 1st May, 2018
Rs. 5 on 1st call payable one month after allotment

Public applied for 92,000 shares & application money was received on 15th April 2018. Applications for 2,000 shares were rejected.
Applications for 90,000 shares were allotted 60,000 shares. Journalise using Joint Application and Allotment a/c.

Q60. On 1-02-2018, X2 Ltd. issued 5,00,000 shares of Rs.10 each at a premium of Rs.2 payable as follows: on application Rs.5 (including
premium), on allotment Rs.4 and balance on 1-05-2018. The list closed on 10-02-2018, by which date, application for 7,00,000 shares
were received. Of the money received, Rs.4,00,000 were returned and Rs. 6,00,000 were applied to amount due to allotment, the
balance of which was paid on 16-02-2018. All shareholders paid 1st call due on 1-05-2018, except a shareholder having 500 shares. His
shares were forfeited on 29-09-2018. Of them, 300 shares were reissued at Rs.8 as fully paid up on 1-11-2018.
Journalise using Joint application & allotment a/c.
 ISSUE OF SHARES FOR CONSIDERATION OTHER THAN CASH

Q61. Y1 Ltd. Purchased a P&M of Rs. 99,000 from Z Ltd. It paid by issuing shares of Rs.10 each. Journalise for the following cases:
(i) When shares are issued at par (ii) When shares are issued at 10% premium

Q62. Y2 Ltd. purchased running business of Z Ltd. for a purchase consideration of Rs. 6,00,000. It paid 20% amount by a cheque/ bank draft &
rest by issuing shares of Rs.100 each at 20% premium. Journalise.

Q63. Y3 Ltd. took over assets of RS. 3,90,000 and liabilities of Rs. 40,000 for a consideration of Rs. 4,00,000. 20% was paid by cheque and
the balance by issue of fully paid equity shares of Rs. 100 each at a premium of 60%. Journalise.

Q64. Y4 Ltd. purchased running business of Z Ltd. at a purchase consideration of Rs.5,00,000. It paid 20% % by accepting a bill of exchange/
promissory note & rest by issuing shares of Rs.100 each at 25% premium. It purchased the following assets & liabilities: L&B
Rs.4,00,000, P&M Rs.3,00,000, Motor Vehicle Rs.2,00,000 and Creditors Rs.5,00,000. Journalise.

Q65. Y5 Ltd. purchased a running business of Z Ltd. at a purchase consideration of Rs. 6,00,000. It paid Rs.50,000 by accepting a Bill of
exchange/ promissory note and rest by issuing shares of Rs.100 each at 10% premium. It purchased the following assets & liabilities:
L&B Rs.4,00,000, P&M Rs.3,00,000, Motor Vehicle Rs.2,00,000 and Creditors Rs.1,00,000. Journalise.

MISCELLANEOUS QUESTIONS

Q66. Z Ltd. issued 50,000 shares of Rs.10 each as fully paid up to the promoters for their services. It also issued 30,000 shares of Rs.10 each
as fully paid up to the underwriters for their commission. Journalise.

Q.67 400 shares of Rs. 10 each on which Rs. 8 were called and Rs. 6 paid are forfeited. 300 shares were reissued as fully paid up in such a way
that Rs. 900 are transferred to capital reserve. At what rate were these shares reissued ? Ans. Rs.7

Q.68 A company forfeited 100 shares of Rs. 10 each for non-payment of 1st call of Rs. 2. 2nd call of Rs. 2 has not been made yet. Find the
maximum amount of discount at which these shares can be reissued ? Ans. 600

Q.69 A company forfeited a share of Rs. 100 issued at a premium of 20% for non-payment of 1st call of Rs. 30 and 2nd call of Rs. 10.
State the minimum price at which this share can be reissued ? Also, state the maximum discount that can be offered. Ans. 40, 60

Q.70 A company forfeited 100 shares of Rs. 10 each (Rs. 7 called up) on which application and allotment of Rs. 5 has been received. Of them, 80
shares were reissued @ Rs. 8 as Rs. 8 paid up. Prepare share forfeiture a/c. Ans. Rs. 100

Q.71 The subscribed capital of a company is Rs. 80,00,000 and the nominal value of the share is Rs. 100 each. There were no calls in arrear till
the final call was made. The final call was paid on 77,500 shares only. The balance in the calls in arrear amounted to Rs. 62,500.
Calculate the final call on share ? Ans. 25

Q.72 A company forfeited 300 shares of Rs. 100 each, Rs. 75 called up, for non- payment of 1st call of Rs. 20. All shares were reissued at a
certain price as Rs. 75 paid up. Amount transferred to capital reserve is Rs. 40 per share. Find the reissue price. Ans. 60

Q.73 A company forfeited 20 shares of Rs. 10 each (Rs. 8 called up) on which Rs. 5 have been received on application and allotment. 15 shares
were reissued @Rs. 6 as fully paid up. What is the balance in share forfeiture a/c after the relevant amount has been transferred
to capital reserve ? Ans. 25

Q.74 If a share of Rs. 10 issued at a premium of Re. 1 on which Rs. 9 (including premium) have been called and Rs. 7 (including premium) have
been received has been forfeited. By what amount share capital a/c should be debited with ? Ans. Rs. 8

Q.75 On 1.1.2022, a company received in advance 1st call of Rs. 2 per share on 10,000 shares. The 1st call was due on 15.2.2022.
Journalise the above transaction and transfer the advance to 1st call by opening a calls in advance a/c.

Q.76 A company invited applications for issuing 50,000 equity shares of Rs.10 each at a premium of Rs. 8. The amount was payable as follows:
On Application - Rs.4 per share (including Rs.2 premium) On Allotment - Rs.6 per share (including Rs.3 premium)
On First Call - Rs.5 per share (including Rs.1 premium) On Second & Final Call - Balance Amount

The issue was fully subscribed.

Gopal, a shareholder holding 200 shares, did not pay the allotment money and Madhav, a holder of 400 shares, paid his entire share
money on allotment. Gopal’s shares were immediately forfeited after allotment. Afterwards, the first call was made.
Krishna, a holder of 100 shares, failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money also
along with the first call. Krishna’s shares were forfeited immediately after the first call.
Second and final call was made afterwards and was duly received. All forfeited shares were reissued at Rs. 9 per share fully paid up.
Pass necessary journal entries using calls in arrears and calls in advance account.
Q.77 A company invited applications for issuing 2,00,000 shares of Rs. 10 each at a premium of Rs. 20 per share. Amount was payable as follows:

On application Rs. 2 per share

On allotment Rs. 13 per share (including premium Rs. 10 per share)
On 1st call Rs. 7 per share (including premium Rs. 5 per share)
On final call Balance

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 money along with 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 1st call money.
Samyesh, holding 2,000 shares did not pay the final call. Samyesh’s shares were forfeited immediately after the final call.
75% of the forfeited shares were re-issued for Rs. 12,000 as fully paid up.
Journalise in books of Denspar Ltd.

Q.78 A company forfeited 900 shares of Rs. 10 each (Rs. 8 called up) issued at a premium of Rs. 2 for non-payment of Rs. 5 (including premium).
Of them, few shares were reissued as Rs. 8 called up for Rs. 10 per share and Rs. 400 were transferred to capital reserve. How many
shares were reissued ? Ans. 80

Q.79 A company purchased a running business from Z Ltd. For a sum of Rs. 30,00,000 payable 40% by cheque and the balance by the issue of
fully paid equity shares of Rs. 100 each at a premium of 20%. The assets and liabilities consist of the following

Book Value Rs. Agreed Value Rs.

Building 10,00,000 16,00,000
Plant & Machinery 8,00,000 5,00,000
Stock 4,00,000 120%
Sundry Debtors 3,00,000 Subject to provision for Doubtful
Debts 5%
Cash & Bank 1,20,000 1,20,000
Sundry Creditor 2,00,000 1,85,000
Pass necessary Journal entries.

Q.80 A company took over assets of Rs. 25,00,000 & liabilities of Rs. 6,00,000 of Queens Ltd. King Ltd. Paid the purchase consideration by
issuing 10,000 equity shares of Rs. 100 each at a premium of 10% and 11,00,000 by Bank Draft .
Calculate purchase consideration and pass necessary journal entries. Ans. 22,00,000

Q.81 Mohan had been allotted for 600 shares by a company on pro rata basis which had issued 2 shares for every 3 shares applied. He had paid
application money of Rs.3 per share and could not pay allotment money of Rs.5 per share. First & final call of Rs.2 was not yet made by
the company. His shares were forfeited. By what amount share allotment account be credited with ? Ans. 2,100

Q.82 A company forfeited 200 shares of Rs.100 each (originally issued at 20% premium which was payable along with application money) on
which allotment money of R.40 and first call money of Rs.30 were not received; the final call money of Rs. 20 is not yet called. These
shares were originally allotted on pro-rata basis in the ratio of 5:4. Of them, 150 shares were subsequently reissued at a discount of
Rs. 10 per share, credited as Rs.80 paid up. Prepare share forfeiture account. Ans. 875

Q.83 A company issued 60,000 shares of Rs.10 each at 20% premium payable as Rs.3 on application, Rs.5 on allotment (including premium) and
balance on 1st and final call. Applications were received for 82,000 shares. The directors resolved to allot as follows:
(A) Applicants of 30,000 shares 20,000 shares
(B) Applicants of 50,000 shares 40,000 shares
(c) Applicants of 2,000 shares Nil
Ramesh who had applied for 900 shares in category (A), and Suresh who was allotted 600 shares in category (B) failed to pay
allotment money. Dinesh allotted 1,000 shares paid his entire amount due at time of allotment. Find amount received on allotement ?
Ans.2,39,350

Q.84 A company invited applications for issuing 80,000 equity shares of Rs.50 each at a premium of 20%. The amount was payable as follows:
On application Rs. 20 per share (including premium Rs. 5)
On allotment Rs. 15 per share (including premium Rs. 5)
On 1st call Rs. 15 per share
On 2nd and final call Balance
 Applications for 1,20,000 were received. Pro-rata allotment was made to applicants for 1,00,000 shares and were rejected.
Seema, holding 4,000 shares failed to allotment money. Afterwards, the 1st call was made. Seema paid allotment money along with the
1st call.
Sahaj who had applied for 2,500 shares failed to pay the 1st call money. His shares were forfeited immediately. 50% of shares applied
by Sahaj were re-issued to Geeta for Rs. 60 per share, Rs. 50 paid up. Final call was not made.
Journalise by opening calls-in-arrears account.

Q.85 A company has offered 50,000 equity shares of Rs.100 each at a premium of Rs 20 , payable as follows :
Application Rs 50 ,
Allotment Rs.40 (including premium),
and balance on first and final call.
The bank account of the company has received Rs.35,00,000 on account of shares application money .X Ltd. Decided to allot all the
application on Pro-rata basis. The balance in calls in arrears account at the time of allotment and first and final call amounted to Rs.
1,00,000 and Rs.1,50,000 respectively. These shares were forfeited and re-issued atRs.90 per share as fully paid up. Journalise.

Q.86 A company invited applications for issuing 55,000 shares of Rs. 10 each payable as Rs.3 on application, Rs.5 on allotment and balance on
call. Public applied for 50,000 shares. Rs. 2,49,000 were received by company on allotment and Rs. 99,400 on call.
The company forfeited those shares on which both allotment and call money was not received.
70% of the forfeited shares were reissued at Rs. 7 per share as fully paid up.
The company paid share issue expense Rs. 20,000 which were completely written off at the end of the year. The company had
Rs. 15,000 in its Securities premium account. Journalise by using calls in arrears a/c.

Q.87 A company invited public to apply for 60,000 shares of Rs. 100 each at 25% premium. The amount was payable as Rs. 40 on application
and balance on allotment. Public had applied for 85,000 shares. Pro-rata allotment was made in ratio 5:4 and remaining applications
were sent letters of regret. Ram holding 4,000 shares failed to pay allotment and his shares were forfeited. Of them 75% shares
were reissued at 20% discount as fully paid up. Journalise by using calls in arrears a/c.

Q.88 A company invited applications for issuing 1,00,000 equity shares of Rs. 10 each. The shares were issued at a premium of 60%.
The amount was payable as follows:
On application and allotment Rs. 6 per share (including premium Rs. 4)
On first and final call Balance including premium

Applications for 1,90,000 shares were received. The allotment was made as follows:
Category A: Applications for 10,000 shares were rejected.
Category B: Applications for 1,00,000 shares were allotted 50,000 shares.
Category C: Applications for 80,000 shares were allotted 50,000 shares.

Excess money received on application and allotment was adjusted towards sums due on first and final call.
Ali, who belonged to category B, and had applied for 1,000 shares, paid the entire amount of his share money along with application.
Bali, who belonged to category C, was allotted 1,000 shares, failed to pay the first and final call money. His shares were forfeited.
His shares were re-issued at Rs. 15 as fully paid up.
Journalise by opening calls-in-arrears and calls-in-advance account.