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Issue of Shares (Worksheet)

Issue of shares questions

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191 views

Issue of Shares (Worksheet)

Issue of shares questions

Uploaded by

bhuvanhanspal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 6

1. Madan Ltd. has Issued 20,00,000 Equity shares of ₹ 10 each.

Till
Date ₹ 8 per share

have been called up and the entire amount received except calls of ₹ 4
per share on

800 shares and ₹ 3 per share from another holder who held 500 shares.
What will be

amount appearing as Subscribed but not fully paid capital in the balance
sheet of the

company?

a)₹ 1,59,95,300 b)₹ 5,700. c)₹ 1,99,95,300 d)₹ 1,95,99,000

2. Ankit Ltd. Forfeited 1000 equity share of ₹ 100 each issued at a


premium of 20% for

non payment of final call of ₹ 30 per share.

State the maximum amount of discount which can be offered at the time
of reissue:

a)70,000 b)1,30,000

c)1,00,000 d)30,000

3. The directors of Neelkamal Ltd. forfeited 70,000 equity shares of ₹


10 each, ₹ 10

called-up, for non-payment of final call of ₹ 1 per share. Half of the


forfeited shares

were reissued at ₹ 20 per share Fully Paid-up. On reissue of forfeited


shares, the

following amount will be transferred to the Capital Reserve Account:

a)₹ 3,15,000 b)₹ 4,20,000

c)₹ 1,40,000 d)₹ 70,000

4. Starline Ltd. issued 10,000 shares of ₹ 10 each, payable as ₹ 3 on


application, ₹ 4 on allotment, ₹ 2 on first call and balance on second
and final call. Out of the total shares, 500 shares were forfeited.
Calculate the Maximum Permissible Discount and Minimum Reissue Price
at the

time of reissue in each of the following cases:

Case 1. If shares were forfeited for non-payment of Second and Final Call.

Case 2. If shares were forfeited for non-payment of First Call and Second
and Final

Call.

Case 3. If shares were forfeited for non-payment of Allotment, First Call


and Second

and Final Call.

Case 4. If shares were forfeited for non-payment of Allotment and First


Call. Second

and Final Call is not yet made.

Case 5. If shares were forfeited for non-payment of First Call. Second and
Final Call

is not yet made. (4 Marks)

5. Assertion (A): The security premium amount can be used to issue


partially paid up bonus shares.

Reason (R): According to Section 52(2) of the Companies Act, 2013, the
amount of

Securities Premium Reserve can be used only for some specific purposes.

a)Both A and R are true and R is

the correct explanation of A.

b)Both A and R are true but R is

not the correct explanation of A.

c)A is true but R is false. d)A is false but R is true.

6. Which type of capital will be written after the authorized capital in


the balance sheet? a)Subscribed Capital b)Issued Capital

c)Paid-up Capital d)Called up Capital


7. A Ltd. forfeited 600 Equity Shares of ₹ 10 each issued at a premium
of 20% to Rajat who had applied for 720 Equity Shares, for non-
payment of allotment money of ₹ 5 per equity share (including
premium) and the first and final call of ₹ 5 per equity share. Out of
these, 200 Equity Shares were reissued to Sanjay credited as fully
paid for ₹ 9 per equity share.

As per the terms of issue, company was to retain the excess application
money to adjust against calls. Pass Journal entries to record forfeiture and
reissue of shares. (3)

8. The authorised capital of Suhas Ltd is Rs. 50,00,000 divided into


25,000 shares of Rs. 200 each. Out of these, the company issued
12,000 shares of Rs. 200 each at a premium of 10%. The amount
per share was payable as follows

Rs. 60 on application

Rs. 60 on allotment (including premium)

Rs. 30 on first call and balance on final call.

Public applied for 11,000 shares. All the money was duly received.

Prepare an extract of balance sheet of Suhas Ltd as per Revised Schedule


III, Part I of

the Companies Act, 2013 disclosing the above information. Also prepare
‘Notes to

accounts’ for the same. (4)

9. Anmol India Ltd. invited applications for issuing 1,20,000 equity


shares of ₹ 10 each at a premium of ₹ 2 per share. The amount was
payable as follows:
On Application (Rs. 2 per share), On Allotment (Rs. 5 per share
including premium), On 1st and Final Call (Balance)
Applications for 1,50,000 shares were received. Shares were allotted
to all the applicants on pro-rata basis. Excess money received on
applications was adjusted towards sums due on allotment. All calls
were made. Monu who had applied for 3,000 shares failed to pay the
amount due on allotment and first and final call. Manav who was
allotted 2,400 shares failed to pay the first and final call. Shares of
both Monu and Manav were forfeited. The forfeited shares were
reissued at ₹ 9 per share as fully paid-up.
Pass necessary journal entries for the above transactions in the
books of Anmol India Ltd. (6)

10. Pawan Ltd. invited applications of 45,000 Equity Shares of 10


each at a premium of ₹4. Company received applications of 15,000
in excess. Amount payable as follows: on
Application ₹ 7 (including premium of ₹ 2), on Allotment ₹ 3
(including premium of ₹1), Balance on first and final call. One
shareholder Renu who applied for 600 shares failed to pay allotment
and first and final call money.
Amount of Securities Premium to be debited at the time of forfeiture
of shares?
a)Debited by ₹ 900 b)Debited by ₹ 750
c)Debited by ₹ 6500 d)Debited by ₹ 450

11. On an equity share of ₹ 10 the company has called up ₹ 8 but


₹ 6 have been received by the company is forfeited, the capital
account should be debited by:

a)₹ 8 b)₹ 10

c)₹ 6 d)₹ 2

12. HR Limited issued 10,000 equity shares @ ₹ 10 each at 10%


premium. All shares

were subscribed and amount was received. Identity the amount to be


transferred to

Securities Premium Reserve A/c

a)₹ 10,000 b)₹ 1,00,000

c)₹ 9000 d)₹ 1000

13. DCM Ltd issued 50,000 shares of ₹ 10 each payable as ₹ 2 per


share on application, ₹ 3Nper share on allotment and ₹ 5 on first
and final call. Applications were received for 70,000 shares. It was
decided that:

a. to refuse allotment to the applicants for 10,000 shares,

a. to refuse allotment to the applicants for 10,000 shares,

b. to allot 20,000 shares to Mohit who had applied for similar number, and
b. to allot 20,000 shares to Mohit who had applied for similar number, and

c. to allot the remaining shares on pro rata basis.

c. to allot the remaining shares on pro rata basis.

Mohit failed to pay the allotment money and Sachin who belonged to
Category C and was allotted 3,000 shares paid the call money with
allotment.

Calculate the amount received on allotment. (3)

14. Y Ltd. purchased Machinery Rs. 55,000 from Z Ltd. 10% was
paid by Y Ltd. by

accepting a Bill of Exchange in favour of Z Ltd. and the balance was paid
by issue of

9% Debentures of Rs. 100 each at par, redeemable after five years.

Pass necessary Journal entries in the books of Y Ltd. (3)

15. Royal Ltd. invited applications for issuing 2,00,000 equity


shares of ₹ 10 each at a premium of 25% payable with application.
Applications for 4,50,000 shares were received. Applications for
1,00,000 shares were rejected and money refunded. Pro-rata
allotment was made to the remaining applicants. The amount per
share was payable as follows:

On Application: ₹ 4 per share including premium

On Allotment: ₹ 3.50 per share

Balance on 1st and Final Call.

Excess application money received with applications was adjusted with


sums due on

allotment.

Application money in excess of sums due on allotment, if any, was


refunded. Raghu,

who had applied for 7,000 shares failed to pay allotment money. His
shares were

forfeited immediately after allotment. Afterwards the first and final call
was made.
Nandan, who had applied for 10,500 shares, failed to pay the first and
final call. His

shares were also forfeited. All the forfeited shares were reissued at ₹
11.50 fully paid

up, to Meeta.

Pass necessary journal entries for the above transactions in the books of
Royal Ltd.

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