Hridaan’s Edumax

S1 - 18, Gate 3, Dosti Shoppe

Imperia, Manpada Thane

Shares
CLASS 12 - ACCOUNTANCY

Time Allowed : 1 mins Maximum Marks : 355

Section A

1 Complete the following [3]

journal entries:
Journal Entries in the
books of Sundram
Ltd.

2 X Ltd. forfeited 900 [3]

Equity Shares of₹ 100
each for the non -
payment of allotment
money of ₹ 30 per
share and the first call
of ₹ 20 per share. The
second and final call of
₹ 25 per share has not
been made. The
forfeited shares were
reissued for ₹ 90 per
share, ₹ 75 paid - up.
 Journalise the above.
3 A company invited [3]
applications for 30,000
Equity Shares of₹ 10
each at a premium of 2
each. The total
application money
received @ ₹ 2 per
share was ₹ 72,000.
Name the kind of
subscription. List the
three alternatives for
allotting these shares. [
Hint: The public issue
has been
oversubscribed.
4 Vimal Ltd. purchased [3]
machinery of₹
9,90,000 from Kamal
Ltd. The payment to
Kamal Ltd. was made
by issuing equity
shares of ₹ 100 each.
Pass the necessary
Journal entries in the
books of Vimal Ltd. for
purchase of machinery
and the issue of shares
when

1. Shares were
issued at par.

2. Shares were
issued at 25%
premium.

5 Marigold Ltd. was [3]

registered with the
authorized capital of₹
3,00,000 divided into
3,000 shares of ₹ 100
each, which were
offered to the public.
Amount payable as ₹
30 per share on
 application, ₹ 40 per
share on the allotment
and ₹ 30 per share on
first and final call.
These shares were fully
subscribed and all
money was dully
received. Prepare
journal and Cash Book.
6 Sundram Ltd [3]
purchased furniture for
Rs.3,00,000 from
Ravindram Ltd,
Rs.1,00,000 were paid
by drawing a
promissory note in
favour of Ravindram
Ltd. The balance was
paid by issue of equity
shares of Rs.10 each at
a premium of 25%.
Pass journal entries in
the books of Sundram
Ltd.
7 Guru Ltd invited [3]
applications for issuing
5,00,000 equity shares
of₹ 10 each at a
premium of ₹ 5 per
share. Because of
favourable market
conditions the issue
was over - subscribed
and applications for
15,00,000 shares were
received.Suggest the
alternatives available
to the Board of
Directors for the
allotment of shares.
8 X Ltd. purchased the [3]
business of Y Ltd. for₹
9,00,000 payable in
fully paid shares of ₹
10 each. What entries
 will be made in the
books of X Ltd. if such
issue is:

1. at par, and

2. at a premium of
25%

9 500 shares of₹ 10 [3]

each, issued at a
premium of ₹ 1 on
which₹ 8 (including
premium) was called
and ₹ 6 (including
premium) was paid,
have been forfeited.
400 of these shares
were re - issued as
fully paid in such a way
that ₹ 800 were
transferred to capital
reserve. Journalise.
10 What do you [3]
understand by Issue of
Shares at a Premium?
11 Citizen Watches Ltd. [3]
invited applications for
50,000 shares of₹ 10
each payable ₹ 3 on
application, ₹ 4 on
allotment and balance
on first and final call.
Applications were
received for 60,000
shares. Applications
were accepted for
50,000 shares and
remaining applications
were rejected. All calls
were made and
received except First
and Final call on 500
shares. Pass the journal
entries in the books of
Citizen Watches Ltd.
12 Tractors India Ltd’ is [3]
registered with an
authorised capital of₹
10,00,000 divided into
1,00,000 equity shares
of ₹ 10 each. The
company issued 50,000
equity shares at a
premium of ₹ 5 per
share. ₹ 2 per share
were payable with the
application, ₹ 8 per
share (including
premium) on the
allotment and the
balance amount on first
and final call. The issue
was fully subscribed
and all the amount due
was received except
the first and final call
money on 500 shares
allotted to Balaram.
Present the ‘share
capital’ in the balance
sheet of Tractors India
Ltd’ as per Schedule III
Part I of the Companies
Act, 2013. Also,
prepare notes to
accounts for the same.
13 Sona Ltd. purchased [3]
machinery costing₹
17,00,000 from Mona
Ltd. Sona Ltd. paid 20%
of the amount by
cheque and for the
balance amount issued
Equity Shares of ₹ 100
each at a premium of
25%. Pass necessary
Journal entries for the
above transactions in
the books of Sona Ltd.
Show your working
 notes clearly.
14 A company invited [3]
applications for 75,000
equity shares of₹ 100
each. The application
money received @ ₹
30 per share was ₹
27,00,000. Name the
kind of subscription.
List the three
alternatives for
allotting these shares.
15 Rupa Ltd. issued [3]
5,00,000 equity shares
of₹ 10 each at a
premium of ₹ 15 per
share. The amounts
were receivable as
follows:

All amounts were

received except final
call on 500 shares held
by Mr. Dushyant. His
shares were forfeited
and were reissued to
Mr. Bharat at a price of
₹ 14 per share. You are
asked to pass the
Journal entries on
forfeiture and re -
issue.

16 X Ltd. forfeited 1,500 [4]

shares of₹ 10 each
(originally issued at a
premium of ₹ 3 per
share which was
 payable along with
application money) on
which allotment money
of ₹ 3 and first call
money of ₹ 2 were not
received; the final call
money of ₹ 3 is not yet
called. These shares
were originally allotted
on pro - rata basis in
the ratio of 3 : 2. These
shares were
subsequently reissued
at a discount of ₹ 1 per
share, credited as ₹ 7
paid up. Pass necessary
Journal entries for
forfeiture and reissue
of shares.
17 Journalise the [4]
following:

1. Y Ltd. forfeited
400 shares of₹
100 each, issued
at a premium of
₹ 5 per share
(to be paid at
the time of
allotment) for
non - payment
of a first call of
₹ 20per share.
The second and
final call of ₹ 20
has not yet been
called. Out of
these, 100
shares were re -
issued on a fully
paid - up for ₹
110 per share.

2. Y Ltd. forfeited
700 shares of₹
 100 each, issued
at a premium of
₹ 5 per share
for non -
payment of
allotment
money of ₹ 35
per share
(including
premium) and
first call of ₹ 20
per share. The
second and final
call of ₹ 20 has
not yet been
called. 500 of
these shares
were re - issued
as ₹ 80 paid -
up for ₹ 92 per
share.

18 Ram holding 10 shares [4]

of Rs. 10 each. He
paidRs. 2 on
application andRs. 3 on
allotment but could not
pay Rs. 3 on first call.
His shares were
forfeited by the
Directors. The Final call
is not made as yet. Give
Journal entries in the
book of company.
19 1000 shares of Rs. 10 [4]
each issued at a
premium of Rs. 2 per
share are forfeited on
which Rs. 8 (including
premium) have been
received. Final call of
Rs. 4 has not been
received. Pass
necessary journal entry
in the books of
 company.
20 Mohan Limited [4]
forfeited the following
Equity Shares of Rs. 10
each issued at a
premium of Rs. 2 per
share:

1. 700 shares
issued to X for
the non -
payment of
second and final
call of Rs. 3 per
share.

2. 500 shares
issued to Z for
the non -
payment of the
first call of Rs. 2
per share and
second and final
call of Rs. 3 per
share.

The forfeited shares

were reissued to Y for
Rs. 11 per share fully
paid. Pass entries to
record the forfeiture
and reissue of shares.

21 Airdrop Ltd. issued [4]

1,00,000 Equity Shares
of₹ 10 each on the
following terms: ₹ 3
payable on application,
₹ 4 on allotment, the
balance as and when
required. Applications
were received for
1,40,000 Equity Shares.
Allotment was made as
under: ,000
applications were
 given 80,000 Equity
Shares, ,000
applications were
given 20,000 Equity
Shares, and ,000
applications were not
allotted any share. A
shareholder who
applied for 1,000
Equity Shares and was
given 1,000 shares
failed to pay the
allotment money. His
shares were forfeited.
Pass Journal entries to
record the above
transactions.
22 A company issued [4]
10,000 shares of₹ 10
each payable as ₹ 2 on
the application, ₹ 3 on
the allotment, ₹ 3 on
first call and ₹ 2 on
second and final call.
Applications were
received for 15,000
shares. The shares
were allotted on a pro -
rata basis to the
applicants of 12,000
shares. All
shareholders paid the
allotment money
except one shareholder
who was allotted 200
shares. These shares
were forfeited. The
first call was made
thereafter. The
forfeited shares were
reissued @ ₹ 9 per
share as ₹ 8 paid - up
after first call. The
second and final call
was not yet made. You
 are required to prepare
Cash Book and pass
Journal entries.
23 On April 1, 2018, a [4]
Limited Company was
incorporated with an
authorised capital of₹
8,00,000 divided into
shares of ₹ 10 each. It
offered to the public for
the subscription of
60,000 shares payable
as follows:

Public applied for

92,000 shares and the
application money was
duly received on April
15, 2018. Applications
for 2,000 shares were
rejected and applicants
for 90,000 shares were
allotted 60,000
shares.Give journal
entries to record the
transactions in the
books of the company
if:

1. The amount due

has been duly
received.

2. The company
maintains the
combined
account for
application and
allotment.
24 Alankrit Ltd. purchased [4]
machinery of₹
10,00,000 from Grand
Iron Works Ltd. and
paid as follows:

1. Issued 50,000
Equity Shares of
₹ 10 each at a
premium of ₹ 2.

2. Gave an
acceptance of₹
3,00,000
payable after 3
months; and

3. Balance by
issuing post -
dated cheque of
two months of₹
1,00,000.

Pass the Journal entries

in the books of Alankrit
Ltd. and Grand Iron
Works Ltd.

25 X Ltd. issued 20,000, [4]

7% Preference shares
of₹ 100 each at a
premium of 6%.
Payments were to be
made as - ₹ 25 on
Application; ₹ 46 on
Allotment, ₹ 10 on
First call and ₹ 25 on
Final Call. The
applications for 18,000
shares were received
and all were accepted.
All the money was duly
received except the
first and final call on
100 shares. Give the
necessary Journal
Entries and prepare
 Cash Book of the
Company. Also, show
the Share Capital in the
Balance Sheet of the
Company. Hint: It will
be assumed that
premium is included in
allotment.
26 Gaurav applied for [4]
5,000 shares of 10
₹
each at a premium of
2.50 per share. But he
was allotted only 2,500
shares on pro - rata
basis. After having paid
₹ 3 per share on
application, he did not
pay allotment money of
₹ 4.50 per share
(including premium)
and on his subsequent
failure to pay the first
call of ₹ 2 per share,
his shares were
forfeited. These shares
were reissued at the
rate of ₹ 8 per share
credited as fully paid.
Pass journal entries to
record the forfeiture
and reissue of shares.
27 Bharat Ltd. was [4]
incorporated with a
capital of₹ 2,00,000
divided into shares of
₹ 10 each. 2,000 shares
were offered for
subscription and out of
these, 1,800 shares
were applied for and
allotted. ₹ 3 per share
(including ₹ 1
premium) was payable
on application, ₹ 4 per
share (including ₹ 1
 premium) on
allotment, ₹ 2 per
share on first call and
₹ 3 per share on final
call. All the money was
received. Give
necessary Journal
entries and show share
capital in the Balance
Sheet.
28 Atlas Co. Ltd. [4]
Purchased a machine
from HMT Co. for Rs
64,000. It was decided
to pay Rs. 10,000 in
cash and balance will
be paid by issue of
shares of Rs. 10 each,
Pass journal entries
shares

1. Issued at par

2. Issued at
premium of
20%

29 Hema Ltd. invited [4]

applications for 10,000
shares of₹ 100 each
payable as follows: ₹
20 on application, ₹ 30
on allotment, ₹ 20 on
first call and the
balance on final call. All
the shares were
applied and allotted.
All the money was duly
received. You are
required to Journalise
these transactions.
30 X Ltd. forfeited 1,000 [4]
shares of₹ 20 each
issued at a premium of
₹ 2 per share to Ashok
(₹ 18 called - up) on
 which he did not pay
allotment of ₹ 6
(including premium)
and 1st Call of ₹ 4. Give
Journal Entries for
forfeiture and re -
issue in the following
cases :

1. 600 shares were

re - issued to
Mohan at₹ 14
per share as ₹
18 paid - up;

2. 200 shares to
Sohan as fully
paid - up for₹
24 per share;
and

3. 200 shares to
Suresh as fully
paid - up for₹
10 per share at
different
intervals of
time.

31 On 1st April 2014, [4]

Aradhana Ltd. was
formed with an
authorised capital of
Rs. 90,00,000 divided
into 90,000 shares of
Rs 100 each. The
company invited
applications for issuing
75,000 equity
shares.The amount was
payable as follows : On
application - Rs. 20
per share On allotment
- Rs. 50 per share On
first and final call -
balance amount The
issue was fully
 subscribed and the
company allotted
shares to all the
applicants. All money
was received excepted
the first and final call
on 5,000 shares. Show
the ‘Share Capital’ in
the Balance Sheet of
the company as per
Schedule III of the
Companies Act, 2013
as at 31st March 2015
and also show Notes to
Accounts.
32 JCV Ltd. forfeited 200 [4]
shares of₹ 10 each
issued at a premium of
₹ 2 per share for the
non - payment of
allotment money of ₹ 3
per share (including
premium). The first
and final call of ₹ 4 per
share has not been
made as yet. 50% of
the forfeited shares
were reissued at ₹ 8
per share as fully paid -
up. Pass necessary
Journal entries for the
forfeiture and reissue
of shares.
33 S.S.C. Ltd. has a paid - [4]
up share capital of₹
60,00,000 and a
balance of ₹ 15,00,000
in the Securities
Premium Account. The
company management
does not want to carry
over the balance. State
the purposes for which
the balance can be
utilised.
34 1. Virender [4]
Limited
forfeited 400
shares of₹ 100
each (₹ 60
called - up)
issued at par to
Mukesh on
which he had
paid ₹ 25 per
share. Out of
these, 300
shareswere re -
issued to
Sanjeev as ₹ 60
paid - up for ₹
45 per share.
Pass entries for
forfeiture and re
- issue of
shares.

2. The Directors of
Devendra Ltd.
resolved on 1st
April, 2016 that
1,000 equity
shares of₹ 10
each, ₹ 8 per
share called -
up be forfeited
for non -
payment of first
call of ₹ 2 per
share. On 1st
May, 2016, 600
of these shares
were re - issued
at ₹ 7 per share
fully paid - up.
Pass entries for
forfeiture and re
- issue of
shares.

35 A, who holds 200 [4]

 shares of₹ 100 each.
has paid only ₹ . 5 ner
chare as application
money. B, who holds
300 shares of ₹ 100
each, has paid ₹ 25 per
share on application
and ₹ 30 per share on
allotment. C, who holds
400 shares of ₹ 100
each, has paid ₹ 25 per
share on application ₹
30per share on
allotment and ₹ 20 per
share on first call. They
failed to pay their
arrears and the final
call. Their shares were
forfeited and re -
issued at ₹ 95 per
share. Prepare
necessary journal
entries.
36 Nikhil Ltd purchased a [4]
running business from
Sonia Ltd for a sum of₹
22,00,000 by issuing
20,000 fully paid
equity shares of ₹ 100
each at a premium of
10%. The assets and
liabilities consisted of
the following:
Machinery ₹ 7,00,000;
debtors ₹ 2,50,000;
stock ₹ 5,00,000;
building ₹ 11,50,000
and bills payable ₹
2,50,000. Pass
necessary journal
entries in the books of
Nikhil Ltd for the above
transactions.
37 Pass journal entries for [4]
 the following:

1. X Ltd.
purchased Land
and Building
from R.
Sundram for₹
5,00,000
payable in fully
paid shares of ₹
100 each at a
premium of
25%.

2. Y Ltd. decided to
issue 2,000
shares of₹ 100
each to the Unit
Trust of India as
underwriting
commission.

38 Prayuj Ltd. forfeited [4]

2,000 shares of₹ 10
each, fully called up, on
which they had
received only ₹ 14,000.
50 of the forfeited
shares were reissued
for ₹ 9 per share fully
paid up. Pass necessary
journal entries for
forfeiture and re -
issue of shares. Also
prepare a share
forfeited account.
39 Sico Ltd. took over the [4]
assets of₹ 4,80,000
and liabilities of ₹
80,000 of Mittal Ltd. for
a consideration of ₹
3,20,000;₹ 20,000
were paid by an
acceptance in favour of
Mittal Ltd. payable
after 3 months and the
 balance by the issue of
fully paid 8%
Preference Shares of ₹
100 each at a premium
of 50%. Pass the
necessary journal
entries for the above
transactions in the
books of Sico Ltd.
40 B Ltd was registered [4]
with an authorised
capital of Rs.20,00,000
divided into equity
shares of Rs.10
each.The company
invited applications for
the issue of 1,00,000
shares. Applications for
96,000 shares were
received. All calls were
made and were duly
received except the
final call of Rs.2 per
share on 2,000 shares.
All these shares were
forfeited and later on
reissued at Rs.18,000
as fully paid.

1. Show how
’share capital’
will appear in
the balance
sheet of B Ltd as
per Schedule III,
of the
Companies Act,
2013.

2. Also prepare
’Notes to
Accounts’ for
the same.

41 Trisha Ltd. invited [6]

applications for
4,00,000 Equity shares
of₹ 10 each, payable as
₹ 3 on application, ₹ 4
on allotment and the
balance on first and
final call. The excess
application money was
to be adjusted against
allotment only. Shreya,
a shareholder, who had
applied for 3,000
shares, failed to pay the
call money and his
shares were
accordingly forfeited
and reissued in such a
way that ₹ 6,250
should be transferred
to capital reserve. You
are required to fill in
the missing
information in the
journal entries given
below: Trisha Ltd.
JOURNAL
42 A company offers [6]
10,000 shares of₹ 10
each to the public. The
amount is payable as
follows:

1. On Application₹
3 per share

2. On Allotment
per share

3. On 1st call₹ 3
per share

4. On 2nd call per

share

Applications are
received for 15,000
shares.The directors
made the allotment as
follows:

1. No allotment to
applicants for
3,000 shares

2. Rest of the
shares were
allotted on pro -
rata basis.

All calls duly made and

paid except:

1. Mohan, a holder
of 100 shares
paid the two
calls with the
allotment.

2. Sohan, a holder
of 200 shares
fails to pay the
1st and 2nd
calls money.

3. Rohan, a holder
 of 100 shares
fails to pay the
2nd call money.

Pass the necessary

journal entries to
record the above
transactions.

43 Piyush Ltd. invited [6]

applications for issuing
1,00,000 shares of₹ 10
each payable as
follows: ₹ 4 - per
share on application ₹
2 - per share on
allotment Balance on
first and final call.
Applications were
received for 1,60,000
shares. Full allotment
was made to the
applicants of 10,000
shares. The remaining
applicants were
allotted 90,000 shares
on pro - rata basis.
Excess money received
with application was
adjusted towards sums
due on allotment and
call. Kanika, holding
6,000 shares, who
belonged to the
category of applicants
to whom full allotment
was made, paid the call
money at the time of
allotment. Ruchi, who
belonged to the
category of applicants
to whom shares were
allotted on pro - rata
basis did not pay
anything after
application on her 600
 shares. Ruchi’s shares
were forfeited after the
first and final call.
These shares were
later reissued at ₹ 9
per share fully paid up.
Pass the necessary
journal entries for the
above transactions by
opening calls in arrears
and calls in advance
account wherever
necessary. Hints:

1. Excess
application
money
transferred to
Calls in Advance
A/c:₹ 60,000

2. Amount due
from Ruchi on
First and Final
Call = 600× ₹ 4
= 2,400 Less:
Calls in Advance
from Ruchi =
400 Amount not
paid by Ruchi
on First & Final
Call = 2,000

44 On 1st April, Kamya [6]

Ltd. was formed with
an authorised capital of
Rs. 40,00,000 divided
into 4.00,000 equity
shares of Rs. 10 each.
The company issued a
prospectus inviting
applications for
3,80,000 equity shares.
The company received
applications for
3,60,000 equity shares.
 During the first year,
Rs. 8 per share were
called. Deepti holding
3,000 shares and Divya
holding 6,000 shares
did not pay the first call
of Rs. 2 per share.
Divya’s shares were
forfeited after the first
call and later on, 5,000
of the forfeited shares
were reissued at Rs. 6
per share, Rs. 8 called
up.Show the following:

1. ‘Share Capital’
in the Balance
Sheet of the
company as per
Schedule III Part
- I of the
Companies Act,
2013.

2. Also, prepare
‘Notes to
Accounts’.

45 Zee Limited was [6]

registered with a
capital of₹ 20,00,000,
divided into 80,000
shares of ₹ 25 each.
The Company offered
to the public for
subscription 40,000
shares payable ₹ 7.50
per share on
Application, ₹ 7.50 per
share on allotment and
the balance in two calls
of equal amounts. The
company received
applications for 46,400
shares. Applications for
4,000 shares were
 rejected altogether and
the application money
was returned to the
applicants. A person
who applied for 4,000
shares was allotted
only 1,600 shares and
the excess of his
application money was
carried forward
towards the payment
of allotmentand calls.
Make Journal entries to
record the above issue
of shares.
46 X Limited offered to the [6]
public 10,000 equity
shares of₹ 10 each at
apremium of ₹ 2 per
share payable as
follows: On application
₹ 3; On allotment
(including premium) ₹
4; On first call ₹ 3 and
on second and final call
₹ 2. Applications were
received for 15,000
shares. All applications
were placed under four
categories and
allotment was made as
follows: Category A: to
applicants of 4,000
sharesin full Category
B: to applicants of
6,000 shares4,000
shares Category C: to
applicants of 3,000
shares2,000 shares
Category D: to
applicants of 2,000
sharesNil Except in the
cases where
applications were
wholly rejected, excess
 application money was
not to be refunded but
to be adjusted against
money due on
allotment and calls. A,
an applicant under
category B to whom
400 shares were
allotted failed to pay
the allotment money
and on his failure to
pay the first call his
shares were forfeited.
B, an applicant under
category C to whom
300 shares were
allotted failed to pay
both the calls and his
shares were also
forfeited. of the shares
thus forfeited were re -
issued to C as fully paid
for ₹ 8 per share. Show
Cash Book, Journal
entries and prepare the
Balance Sheet in the
books of the company;
you are to assume that
the whole of the, 4’s
shares were issued to
C.
47 A limited company [6]
offered for
subscription 10,000
Equity Shares of 10
each at a premium of₹
2 per share and 5,000,
10% Preference Shares
of ₹ 10 each at par. The
amount on equity
shares was payable as
thus: On Application ₹
3 per share On
Allotment ₹ 5 per
share (including a
 premium) On First Call
₹ 4 per share The
amount of preference
shares was payable as
follows: On Application
₹ 3 per share On
Allotment ₹ 4 per
share On First Call ₹ 3
per share All the shares
were fully subscribed,
called - up and paid.
Record these
transactions in the
journal and cash book
of the company.
48 AB Ltd. invited [6]
applications for issuing
1,00,000 equity shares
of₹ 10 each. The
amount was payable as
follows: On Application
- ₹ 3 per share On
Allotment - ₹ 3 per
share On First and
Final Call - ₹ 4 per
share Applications for
1,50,000 shares were
receded and pro - rata
allotment was made to
all applicants as
follows: Applicants for
80,000 shares were
allotted 60,000 shares
on pro - rata basis.
Applicants for 70,000
shares were allotted
40,000 shares on pro -
rata basis. Sudha, to
whom 600 shares were
allotted out of the
group applying for
80,000 shares failed to
pay the allotment
money. Her shares
were forfeited
 immediately after
allotment. Asha, who
had applied for 1,400
shares out of the group
applying for 70,000
shares failed to pay the
first and final call. Her
shares were also
forfeited. Out of the
forfeited shares 1,000
were re - issued @₹ 8
per share fully paid -
up. The re - issued
shares included all the
forfeited shares of
Sudha. Pass necessary
journal entries to
record the above
transactions.
49 A Ttd. issued 60,000 [6]
shares of₹ 10 each at a
premium of 20 %
payable as follows: On
Application ₹ 5
(including premium);
On Allotment ₹ 3; and
On First and Final Call
₹ 4. The company
received applications
for 75,000 shares and
allotment was made as
follows: List I
Applicants for 40,000
shares were allotted in
full. List II Applicants
for 25,000 shares were
allotted 20,000 shares.
List III Applicants for
10,000 shares were
allotted Nil shares. A
shareholder to whom
200 shares were
allotted under List I
paid full amount due
on shares alongwith
 allotment money.
Another shareholder
holding 600 shares
failed to pay the
amount due on call. His
shares were forfeited
and 500 of these shares
were subsequently re -
issued as fully paid @
₹ 11 per share.
Expenses of issue came
to ₹ 20,000 which
were fully written off
against securities
premium A/c. Pass
journal entries in the
books of the company
50 Kayafab Ltd. issued [6]
1,00,000 equity shares
of Rs.10 each payable
as Rs.2 on
application;Rs. 4 on
allotment and Rs.2
each on first and final
call. Applications were
received for 1,50,000
shares. Applicants of
50,000 shares were
sent letters of regret
and application money
was refunded Madhur,
a holder of 3,000
shares failed to pay
allotment money which
he paid along with the
first call. Rohan, a
shareholder holding
700 shares paid both
the calls along with
allotment. Sohan, a
holder of 1,000 shares
did not pay the first call
and the final call. His
shares were forfeited.
The forfeited shares
 were reissued at Rs.11
per share as fully paid -
up.Pass necessary
journal entries for the
above transactions in
the books of the
company.
51 Sagar Ltd. was [6]
registered with an
authorised capital of
Rs. 1,00,00,000 divided
into 1,00,000. Equity
Shares of Rs 100 each.
The company offered
for public subscription
60,000 Equity Shares.
Applications for 56,000
shares were received
and an allotment was
made to all the
applicants. All the calls
were made and were
duly received except
the second and final
call of Rs. 20 per share
on 700 shares. Prepare
Balance Sheet of the
company showing the
different types of share
capital.
52 Ben Tech Ltd. company [6]
had an authorised
capital of₹ 12,50,000
divided into 12,500
shares of ₹ 100 each.
The company issued
10,000 shares payable
as ₹ 25 on application,
₹ 25 on allotment, ₹
30 on first call and ₹
20 on second and final
call. All the shares were
subscribed. The
Directors made
allotment and the
 money was duly
received except the
second and final call on
500 shares, which is
transferred to Call - in
- Arrears Account. Pass
Journal entries,
prepare Share Capital
Account and show how
share capital will
appear in the Balance
Sheet.
53 Alfa Limited invited [6]
applications for
4,00,000 of its equity
shares of₹ 10 each on
the following terms:

Applications for
5,00,000 shares were
received. It was
decided:

1. to refuse
allotment to the
applicants for
20,000 shares;

2. to allot in full to
applicants for
80,000 shares;

3. to allot the
balance of the
available shares
pro - rata
among the other
applicants; and

4. to utilise excess
application
money in part
 as payment of
allotment
money.

One applicant whom

shares had been
allotted on pro - rata
basis, did not pay the
amount due on
allotment and on the
call, and his 400 shares
were forfeited. The
shares were reissued
@₹ 9 per share. Show
the journal and cash
book entries necessary
to record the foregoing
data.

54 New India Ltd. was [6]

registered with a
capital of₹ 10,00,000
in equity shares of ₹
100 each. It issued a
prospectus inviting
applications for 20,000
shares at 40%
premium payable as
follows: On Application
₹ 50 (including ₹ 10
premium); On
Allotment ₹ 40
(including ₹ 10
premium); On First Call
₹ 30 (including ₹ 10
premium); On Second
and Final Call ₹ 20
(including ₹ 10
premium).
Applications were
received for 20,000.
The amount due was
received. Pass the
necessary Journal
entries and also show
how ’Share Capital’ will
 be shown in the
Balance Sheet of the
Company.
55 A company issued for [6]
public subscription
60,000 equity shares of
₹ 10 each at a
premium of ₹ 4 per
share, payable as under
₹ 4 on Application; ₹ 5
on Allotment
(including premium), ₹
2.50 on First Call and ₹
2.50 on Final Call.
Applications were
received for 75,000
equity shares. The
shares were allotted
pro - rata to the
applicants for 70,000
shares, the remaining
applications being
rejected. Money over -
paid on applications
was utilised towards
sums due on allotment.
A, to whom 1,200
shares were allotted
failed to pay allotment
and calls money and B,
to whom 1,800 shares
were allotted failed to
pay two calls. These
shares were
subsequently forfeited
after the final call was
made. All the forfeited
shares were sold to
Rajesh as fully paid -
up at ₹ 11 per share.
Prepare Cash Book and
journal entries
required to record the
above transactions.
Hint: Premium of ₹
 4,800 due on A’s shares
will be debited in the
entry of forfeiture.
56 Khushboo Ltd. issued [6]
for Public subscription
50,000 equity shares of
₹ 10 each at a
premium of 30%
payable as under: ₹ 4
on application ₹ 5 on
allotment (including
premium) ₹ 4 on first
& final call Applications
were received for
1,00,000 shares.
Allotment was made
pro - rata to the
applicants for 80,000
shares, the remaining
applications being
refused. Money
overpaid on the
application was
utilised towards sums
due on allotment.
Chatterjee, to whom
1,000 shares were
allotted, failed to pay
the allotment and call
money and the shares
were subsequently
forfeited. Half of the
forfeited shares were
reissued as fully paid at
a discount of 10%.
Show the journal
entries to record the
above transactions.
Hints :

1. Out of excess
application
money of₹
2,400, the
amount of ₹
2,000 is a part
 of share capital
and balance of ₹
400 is a part of
securities
premium.

2. Entry for
forfeiture of
shares :Equity
Share Capital
A/c .. Dr. 10,000
Securities
Premium
Reserve A/c
(3,000 - 400)
Dr. 2,600 To
Equity Share
Allotment A/c =
2,600 To Equity
Share First &
Final Call A/c =
4,000 To Share
Forfeiture A/c =
6,000

57 Arti Limited invited [6]

applications for issuing
80,000 shares of₹ 10
each at a premium of ₹
4 per share. The
amount was payable as
follows: On Application
- ₹ 5 per share On
Allotment - ₹ 9 per
share (Including
Premium) Applications
were received for
1,40,000 shares.
Allotment was made on
the following basis:

1. To applicants
for 80,000
shares - 60,000
shares

2. To applicants
 for 60,000
shares - 20,000
shares

Money overpaid on
applications was
utilized towards sum
due on allotment. Rajiv,
who had applied for
1,200 Shares failed to
pay his dues and his
shares were
forfeited.Pass journal
entries in the books of
Arti Limited to record
the above transactions.

58 Surya Tubes Limited [6]

issued 20,000 shares of
₹ 100 each. The due
amount was received
except for 500 shares
on which ₹ 75 per
share was received.
These 500 shares were
forfeited and 300
shares were reissued
for ₹ 60 each fully paid
- up. Show the
Forfeited Shares
Account and the
Balance Sheet as at
closing date.
59 Hindustan Ltd. issued [6]
20,000 shares of₹ 20
each at 20% premium.
The amount was
payable as follows:

Applications were
 received for 18,000
shares, and all were
accepted. All money
was received except:

1. Vasundhra,
holding 500
shares failed to
pay allotment
money and her
shares were
forfeited after
allotment.

2. Tapasya,
holding 300
shares failed to
pay first call
money and her
shares were
forfeited after
the first call.

3. Swama, holding
400 shares
failed to pay
first and second
call money and
her shares were
forfeited.

All the forfeited shares

were reissued at a
discount of 10% as
fully paid up.Pass the
necessary journal
entries in the books of
Hindustan Ltd. Hints:

60 Shiva Ltd. issued [6]

 20,000 shares of₹ 10
each at a premium of
10%. Payments were to
be made as - on
Application ₹ 5
(including premium);
on Allotment ₹ 4 and
on First and Final Call
₹ 2. Applications were
received for 18,000
shares and all were
accepted. All money
was duly received. Pass
necessary entries in
the Books of the
Company.
61 Pass journal entries for [6]
the forfeiture and re -
issue in the following
cases:

1. A Ltd. forfeited
400 shares of
Anil of₹ 10 each
fully called up
for non -
payment of final
call of ₹ 2 per
share and re -
issued to Sunil
as fully paid for
₹ 10 per share.

2. B Ltd. forfeited
500 shares of₹
10 each fully
called up for
non - payment
of first call of ₹
2 per share and
final call of ₹ 2
per share. All of
these shares
were re - issued
as fully paid for
 ₹ 8 per share

3. C Ltd. forfeited
600 shares of₹
10 each fully
called up for
non - payment
of allotment
money of ₹ 3
per share, first
call of ₹ 2 per
share and final
call of ₹ 2 per
share. 400 of
these shares
were re - issued
as fully paid up
at the maximum
rate of discount
allowed by law.

4. DLtd. forfeited
800 shares of₹
10each fully
called up. on
which the
holder has paid
only the
application
money of ₹
3per share. Out
of these. 500
shares were re -
issued at ₹
11per share,
fully paid up.

62 Sunstar Ltd. invited [6]

applications for issuing
2,00,000 equity shares
of each. The amount
was payable as
follows :On Application
– Rs.15 per share On
Allotment – Rs.10 per
share On First and
 Final Call – Rs.25 per
share Applications for
3,00,000 shares were
received. Allotment
was made to the
applicants as follows :

Excess money received

with applications was
adjusted towards sums
due on allotment and
calls. Namita, a
shareholder of
Category I, holding
3,000 shares failed to
pay the allotment
money. Her shares
were forfeited
immediately after
allotment. Manav, a
shareholder of
Category II, who had
allottedfor 1,000
shares failed to pay the
first and final call. His
shares were also
forfeited. All the
forfeited shares were
reissued at Rs.60 per
share fully paid up.Pass
necessary journal
entries and prepare
Cash Book for the
above transactions in
the books of Sunstar
Ltd.

63 SK Ltd invited [6]

applications for issuing
3,20,000 equity shares
of₹ 10 each at a
premium of ₹ 5 per
share. The amount was
payable as follows On
application — ₹ 3 per
share (including
premium ₹ 1 per
share) On allotment —
₹ 5 per share
(including premium ₹
2 per share) On first
and final call —
Balance. Applications
for 4,00,000 shares
were received.
Applications for 40,000
shares were rejected
and application money
refunded. Shares were
alloted on pro - rata
basis to the rest. Excess
money received with
applications was
adjusted towards sums
due on allotment.
Jeevan holding 800
shares failed to pay the
allotment money and
his shares were
immediately forfeited.
Afterwards final call
was made, Ganesh,
who had applied for
2,700 shares failed
topay the final call. His
shares were also
forfeited. Out of the
forfeited shares 1,500
shares were reissued at
₹ 8 per share fully paid
up. The re - issued
shares included all the
forfeited shares of
Jeevan. Pass necessary
journal entries for the
above transactions in
the books of the
 company.
64 Shyam Ltd invited [6]
applications for issuing
80,000 equity shares of
Rs.10 each at a
premium of Rs.40 per
share. The amount was
payable as followsOn
application — Rs. 35
per share (including
Rs.30 premium) On
allotment — Rs. 8 per
share (including Rs. 4
premium) On first and
final call — Balance
Applications for 77,000
shares were received.
Shares were allotted to
all the applicants.
Sundram to whom
7,000 shares were
allotted failed to pay
the allotment money.
His shares were
forfeited immediately
after allotment.
Afterwards the first
and final call was
made. Satyam, the
holder of 500 shares
failed to pay the first
and final call. His
shares were also
forfeited. Out of the
forfeited shares 1,000
shares were reissued at
Rs.50 per share fully
paid - up. The reissued
shares included all the
shares of Satyam. Pass
necessary journal
entries for the above
transactions in the
books of Shyam Ltd.
65 Krishna & Co. Ltd. with [6]
 an authorised capital of
₹ 2,00,000 divided into
20,000 Equity Shares
of ₹ 10 each, issued the
entire amount of the
shares payable as: ₹ 5
on application
(including premium ₹
2 per share), ₹ 4 on
allotment, and ₹ 3 on
call. All share money is
received in full with the
exception of the
allotment money on
200 shares and the call
money on 500 shares
(including the 200
shares on which the
allotment money has
not been paid). The
above 500 shares are
duly forfeited and 400
of these( including the
200 shares on which
allotment money has
not been paid) are
reissued at ₹ 7 per
share payable by the
purchaser as fully paid
- up. Pass journal
entries(including cash
transactions) and show
the balances in the
Balance Sheet giving
effect to the above
transactions.
66 Green Ltd. was [6]
registered with an
authorised capital of₹
2,00,000 in ₹ 10 per
equity share, of these
6,000 Equity Shares
issued as fully paid to
the vendor for
purchase of building,
 8,000 Equity Shares
were issued for
subscription and
during the first year ₹
5 per Equity Share
were called - up,
payable ₹ 2 on
application, ₹ 1 on
allotment, ₹ 1 on first
call and ₹ 1 on second
call. The amounts
received in respect of
these shares were: On
6,000 Equity Shares
the full amount was
received, On 1,250
shares ₹ 4 per Equity
Share, On 500 shares ₹
3 per Equity Share, On
250 shares ₹ 2 per
Equity Share. The
company forfeited 750
Equity Shares on which
less than ₹ 4 per
Equity Share had been
paid. Pass Journal
entries in the books of
the company and also
show share capital in
its Balance Sheet.
67 X Ltd. issued for Public [6]
subscription 1,00,000
equity shares of₹ 10
each at a premium of ₹
5 per share payable as
under: On Application
₹ 5 On Allotment ₹ 7
(including premium ₹
5) On First & Final Call
₹ 3 Applications were
received for 1,50,000
shares. Allotment was
made pro - rata to all
the applicants and the
money overpaid on
 application was
utilised towards sums
due on allotment.
Suruchi, who applied
for 1,800 shares failed
to pay the allotment
and call money and the
shares were
subsequently forfeited.
Two - third of the
forfeited shares were
re - issued to Supriya
as fully paid up at ₹ 8
per share. Show the
journal entries to
record the above
transactions.
68 Prince Limited issued a [6]
prospectus inviting
applications for 20,000
equity shares of₹ 10
each at a premium of ₹
3 per share payable as
follows:

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 ₹ 9 per share, the
whole of Mr. Mohit’s
shares being included.

69 S Ltd. offers 1,00,000 [6]

equity shares of₹ 10
each payable ₹ 3 on
application, ₹ 3 on
allotment (including
premium ₹ 2 ), ₹ 4 on
first call three months
after allotment and ₹ 2
on final call three
months after first call.
Applications were
received for 1,58,500
shares and allotment
was made as under:
Shares allotted
Allotment in full
19,000 (Mr. D paid in
full on allotment in
respect of 4,000
shares)

Application money of₹

52,500 in respect of
17,500 shares upon
which no allotment
was made was
returned to applicants.
All amounts were
received except final
call on 100 shares
 which were forfeited
and re - issued later on
@ ₹ 9 each. Interest on
calls in advance is paid
@ 12 % p.a. Give
necessary journal
entries.

70 DF Ltd. invited [6]

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% 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 not 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.
71 1. Ravi Ltd., [6]
forfeited 800
shares of₹ 10
each, ₹ 7.50
paid, for non -
payment of
Final Call of ₹
2.50 per share.
Out of these,
600 shares were
re - issued as
fully paid up in
such a way that
₹ 2,100 were
transferred to
capital reserve.
Pass necessary
journal entries.

2. X Ltd., forfeited
800 shares of₹
10 each, ₹ 7.50
called - up, for
non - payment
of First Call of ₹
2.50 per share.
Out of these,
600 shares were
re - issued for ₹
6 per share as ₹
7.50 paid up.
 Pass necessary
journal entries.

3. 400 shares of₹

10, on which ₹
8 has been
called and ₹ 6
has been paid,
are forfeited.
Out of these,
300 are re -
issued for ₹ 7 as
fully paid. Pass
necessary
journal entries.

72 Hindustan Steel Ltd. [6]

invited applications for
50,000 equity shares of
₹ 10 each at a
premium of ₹ 4 per
share. The amount was
payable as follows:

Applications for 60,000

shares were received.
The allotment was
made to all the
applicants on a pro -
rata basis. Excess
application money was
adjusted towards sums
due on allotment. Ram,
to whom 500 shares
were allotted, failed to
pay allotment and call
money. Shyam, to
whom 1,000 shares
were allotted, failed to
pay the call money.
These shares were
forfeited. Out of the
 forfeited shares 1,200
shares (including all
shares of Shyam) were
re - issued at 10%
discount as fully paid -
up.Pass the necessary
journal entries in the
books of the company
by opening Calls in
Arrears A/cwherever
necessary. Hint:

73 Telecom Ltd. ’ issued [6]

20,000 Equity Shares
of ₹ 10 each at a
premium of ₹ 5 per
share, payable as: ₹ 7
(including premium)
on application, ₹ 5 on
allotment and the
balance after three
months of allotment. A
shareholder to whom
200 shares were
allotted failed to pay
the allotment and call
money and his shares
were forfeited. 160 of
the forfeited shares
were reissued for ₹
1,600. Give necessary
entries in company’s
Journal and the
Balance Sheet.
74 K.N. Ltd. invited [6]
applications for issuing
6,00,000 equity shares
of₹ 10 each at a
premium of ₹ 3 per
share. The amount was
payable as follows:

Applications for
8,00,000 shares were
received. Applications
for 50,000 shares were
rejected and the
application money was
refunded. Shares were
allotted to the
remaining applicants
as follows: Category I:
Those who had applied
for 4,00,000 share
were allotted 3,00,000
shares on pro - rata
basis. Category II: The
remaining applicants
were allotted the
remaining shares on
pro - rata basis. Excess
application money
received with
applications was
adjusted towards sums
due on first call.
Rakesh to whom 6,000
shares were allotted
failed to pay the first
call money. Rakesh
belonged to category I.
His shares were
forfeited. The forfeited
shares were re - issued
at ₹ 13 per share fully
paid up. The second
call was made
afterwards and was
duly received. Pass
 necessary journal
entries for the above
transactions in the
books of K.N. Ltd.

75 A Ltd. makes an issue [6]

of 10,000 equity shares
of₹ 100 each, payable
as follows:

Members holding 400

shares did not pay the
second call and the
shares are duly
forfeited, 300 of which
are re - issued as fully
paid at₹ 80 per share.
Pass Journal entries
and prepare Share
Capital and Forfeited
Share Account in the
books of the Company.