OVER-SUBSCRIPTION

Q-1 Meera Co. Ltd. invited applications for 50000 equity shares of 10 each at
a premium of

2 per share, payable as follows

On application on 1st May, 2017 2

On allotment on Ist July, 2017 5 ( Including Premium)

On Ist and final call on 1st October, 2017 5

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 the applicants of 10,000 shares.
3) Allot the balance of the shares applied on a pro-rata basis among the other
applicants.
4) Utilise 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 shareholders from

the date on which it was due till the balance sheet date.

You are required to, for the year 2017-18

(a) Prepare the cash book to record the above issue of shares.

(b) Pass journal entries in the journal proper (including entries for interest on
calls-inarrears)

Prepared by- SHUBHAM JAGDISH 8112601234

Q-2 Suresh Ltd was registered with an authorised capital of 40,00,000 divided
into 400000 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 60000 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 utilised towards allotment.

Nobby, a shareholder from Category A, who had applied for 1200 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, alongwith allotment.

The company forfeited Nobby's shares after the first and final call and paid
interest 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.

Prepared by- SHUBHAM JAGDISH 8112601234

Q-3 During the year 2014-15, ABC Ltd issued 10,000 equity shares of 50 each
at 55 per share, payable as follows-

On application 15

On allotment 20 (including premium 5)

On first and final call 20

All the issued shares were subscribed for by the public.

One shareholder holding 500 shares did not pay the amount due on allotment
and his shares were immediately forfeited. Another shareholder holding 100
shares paid the amount of the first and final call with allotment.

After the company had made the first and final call, 200 of the forfeited shares
were Re- issued as fully called up at 45 per share.

The share issue expenses were 7 7,000 which were written-off at the end of
the year.

You are required to pass journal entries in the books of the company for the
year ending 31st March, 2015.

Q-4 Pluto Lid issued 20,000 equity shares of 10 each, payable as follows

On application 4

On allotment 1

On first call 3

On second and final call 2

Applications were received for 30,000 shares and pro rata allotment was made
to all

the applicants.

Excess money received on application was utilised towards allotment and

subsequent calls.

Prepared by- SHUBHAM JAGDISH 8112601234

One shareholders holding 100 shares did not pay the final call and his shares
were forfeited.

Of the forfeited shares, the company re-issued 70 shares as fully paid up at 12

per share.

You are required to pass journal entries in the books of the company for the
year ending 31st March, 2014.

Q-5 Saturn Ltd was registered with an authorised capital of 7 12,00,000,

divided into 1,20,000 equity shares of 10 each. It issued 40,000 equity shares
to the public at a premium of 5 per share, payable as follows

On application 6

On allotment 9 (including premium of 5)

All the shares were applied for and allotted . One shareholder holding 500
shares did not pay the allotment money and his shares were forfeited. Out of
the forfeited shares, the company re-issued 400 shares at 7 per share fully
called-up.

You are required to

(1) Pass journal entries in the books of company.

(2) Prepare-

(a) Securities premium reserve account

(b) Share capital account

Q-6 Cargo Ltd invited applications for the issue of 20,000 equity shares of 10
each at a premium of 1 per share, payable as follows

On application 3

On allotment The balance (including premium 1)

Applications were received for 30,000 shares and pro-rata allotment was made
to the remaining applicants after refunding application money to 5,000 share
applicants.

Prepared by- SHUBHAM JAGDISH 8112601234

Nicholas, who was allotted 3,000 shares, failed to pay the allotment money
and his shares were forfeited.

Out of these forfeited shares, 1,000 shares were re-issued as fully paid-up @ 8
per share.

You are required to

(1) Pass journal entries in the books of the company.

(2) Prepare calls-in-arrears account.

(3) Prepare share forfeiture account.

Q-7 Reliable Ltd was registered with an authorised capital of 20,00,000 in 10

per equity share. It invited applications for issuing 1,00,000 equity shares at a
premium of 2 per share. The amount was payable as follows

On application 4 per share (including premium)

On allotment 3 per share

Balance on first and final call.

Applications were received for 1,30,000 shares. Applications for 10,000 shares
were rejected and the application money received on them was refunded. Pro-
rata allotment was made to the remaining applications. Amount overpaid on
these applications was adjusted towards the amount due on allotment.

Sameer, who had applied for 1,200 shares, failed to pay the allotment and call
money The company forfeited his shares, out of which, 800 shares were re
issued to Sanjay 9 per share fully paid-up.

You are required to

(1) Pass the journal entries in the books of the company through calls in arrears
account

(2) Prepare the share allotment account.

Prepared by- SHUBHAM JAGDISH 8112601234

Q-8 In 2010, Ganga Ltd was registered with an authorised capital of 1,00,000
equity shares of 10 each. Of these, 4,000 equity shares were issued as fully
paid to vendors for the purchase of plant and machinery and the remaining
6,000 shares were subscribed for, by the public for cash.

During the first year, 6 per equity share was called up, on these 6,000 shares,
payable 3 on application, 1 on allotment and 2 on the first call. The amount
received. respect of these shares were as follows-

On 5,000 shares, the full amount called.

On 600 shares, 4 per share.

On 400 shares, 3 per share.

The company forfeited all those shares on which only 3 had been received and
re-issued them at 4 per share, 6 called up.

Journalise the transactions in the books of the company and prepare calls- in
arrears

Q-9 Sachdeva Tyre and Company Limited issued applications for 1,00,000
equity shares

of 10 each at a premium of 3 per share. The amount was payable as follows

(1) On application 2 (2) On allotment : 5 (including premium)

(3) Balance on the first and final call.

Applications were received for 1,50,000 shares. Allotment was made pro-rata
to all applicants. Sudhir who had applied for 300 shares failed to pay allotment
and call money. His shares were forfeited after the first and the final call. Of
these, 170 shares were re-issued to Pramod at 9 per share fully paid.

Pass the necessary journal entries to show the above transactions, Show your
working clearly.

Prepared by- SHUBHAM JAGDISH 8112601234

Q-10 The directors of Bhagat and Company Ltd issued 50,000 equity shares of
10 each at 12 per share, payable as 5 on application including the premium, 4
on allotment and the balance on final call.

Applications were received for 70,000 shares out of which applications for
8,000 shares were rejected and their money was refunded. Money over paid
on application.was applied towards sums due on allotment. All the money
were duly received except from one shareholder holding 500 shares who failed
to pay the final call money.

Pass the necessary journal entries to give effect to the above transactions.

Q-11 Pioneer Ltd invited applications for 12,000 shares of 100 each to be
issued at a

premium of 10% payable as follows

On application 25

On allotment 40

On first and final call 35

Applications were received for 10,000 shares and all of these were accepted.
All the money due was received except the first and final call on 100 shares
which were forfeited. 60 of these forfeited shares were re-issued @ 90 per
share credited as fully paid.

You are required to

1. Pass the necessary journal entries.

2. Prepare the balance sheet of the company.

Q-12 The Decoy Trading Company Ltd was registered with a nominal capital of
1,00,000 in shares of 10 each. 9,000 of which were issued payable as 1 on
application, 2 on allotment, 3 on first call and the balance on final call. All the
shares were applied for and allotted and all cash was received on the due
dates except that one shareholder holding 100 shares failed to pay the
allotment money and another shareholder holding 200 shares paid the first
and final call together with allotment money.

Prepared by- SHUBHAM JAGDISH 8112601234

You are required to journalise the above transactions in the books of the
company particularly through calls-in-arrears account and calls-in-arrears
account and calls in-advance account as and when necessary.

Prepared by- SHUBHAM JAGDISH 8112601234