Dhanji Bai Ka Nohra, Ratlam (M.P.

)
Cell:9407261000,9229282873

1 Priya Ltd. issued a prospectus inviting applications for 50,000 equity shares of 100
each payable as: ₹10 on application; ₹30 on allotment; ₹25 on first call and 35 on final
call. Applications were received for all the shares issued. Allotment was made to all
applicants. All dues were cleared timely. Give journal entries and ledger accounts.

2 The authorised share capital of XYZ Ltd. is ₹2,00,000 divided into 20,000 equity shares
of 10 each. Out of these shares, 12,000 shares were issued to the public payable as 2 on
application, 4 on allotment, 2 on first call and 2 on second and final call. Pass the
necessary journal entries, assuming that all the amount has been duly received.

3 Lock and Key Ltd. issued 1,00,000 equity shares of 10 each at a premium of 2 per
share. The amount was payable as: 2 on application, 5 on allotment (including premium)
and the balance on first and final call. Pass necessary journal entries

4 Tarun Ltd. issued 10,000 shares of 10 each on 30th June, 2017. All the shares were
applied for and duly allotted on 15th July, 2017. Pass journal entries when shares are: (i)
issued at par; (ii) issued at 20% premium

5 Joy ltd. Issued 80000 shares of ₹10 each at premium of ₹4 per shares the amount was
payable as ₹ 2 (incl. ₹ 1 Premium) , on allotment ₹ 3 (incl. ₹ 1 Premium) , first call ₹4
(incl. ₹ 1 Premium), second &final call ₹5 (incl. ₹ 1 Premium) . Pass journal entries,
assuming that all money received and prepare bank account.

6 Rishika Ltd. had authorised capital of ₹4,00,000 and issued 50.000 Equity shares of ₹ 10
each at a premium of 10%. Payments were made as on application ₹4, on allotment 5
(including premium) and on first and final call ₹2 Applications were received for 55,000
shares and all applications were accepted. All money was duly received. Pass
necessary journal entries in the books of company.

7 A-one Product Ltd. is registered with authorised capital of ₹ 10,00,000 divided into
50,000 equity shares of 20 each. It issued 25.000 Equity Shares for subscription at
premium of ₹ 2 per share, issue price being payable along with application. It received
4,62.000 towards application money.
You are required to pass the necessary Journal entries

8 Home Products Ltd. is registered with authorised capital of ₹ 10,00,000 divided into
1,00,000 equity shares of ₹ 10 each. It issued 70.000 Equity Shares for subscription at
premium of ₹ 2 per share, payable 3. on application, 5 on allotment and balance on first
and final call. It received subscription for 62,500 shares. You are required to pass the
necessary Journal entries
 9 Krish Ltd. offers 20,000 shares of ₹10 each to the public. The amount payable is as
follows
On Application ₹ 3 per share; On Allotment ₹ 2 per share;
On First Call ₹ 3 per share; On Final Call ₹ 2 per share.
Applications were received for all the shares and all were accepted. All the money was
duly received except from a holder of 400 shares who failed to pay both the calls. Pass
necessary journal entries to record the above transactions in the company's books

10 Nagarjun Ltd. issued to the public 5,000 equity shares of 100 each on 1st April, 2018
payable as follows:
On application ₹ 20, on allotment ₹ 30 made on 30th June, first call ₹30 (made on 1st August)
and final call ₹ 20 each (made on 1st October).
All these shares were subscribed and allotted. One shareholder to whom 200 shares were
allotted, paid all the money with the allotment money. Give necessary journal entries in the
books of the company.

11 Indiana Ltd. was registered with a

capital of 5,00,000 in shares of ₹10 each. It issued 40,000 shares of 10 each payable as
follows:
₹ 2.50 on Application payable on 1st Feb., 2018
₹ 2.50 on Allotment payable on 1st April, 2018.
₹3 on First Call payable on 1st July, 2018
₹ 2 on Second Call payable on 1st November, 2018
All the money payable on application and allotment were duly received but the holder of 1,000
shares failed to pay the amount due on allotment and he deposited this amount with first call
money and another holder of 2,000 shares paid the whole amount due along with first call
money. All the calls were made by the company.
Record these transactions in the journal.

12 Sundram Ltd. purchased furniture for ₹3,00,000 from Ravindram Ltd. ₹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 ₹10 each at a Premium of 25% Pass necessary Journal Entries in the books
of Sundram Ltd.

13 Curtain Films Ltd. purchased assets worth ₹5,25,000 for which payment was made by
issuing equity shares of the face value of ₹100 each at a premium of 5%. Journalise the above
transactions.

14 MNP LId. purchased assets from RSA Ltd. for ₹5,50,000. Cash paid at the time of purchase
amounted to ₹55,000 while the balance was settled by the issue of equity shares of ₹100 each
at a premium of 10%. Journalise the above transactions in the books of MNP Ltd.
15 Sundar Ltd. took over the assets of ₹15,00,000 and liabilities of ₹5,00,000 from News Ltd.
for a purchase consideration of ₹10,20,000. Sundar Ltd. notes promissory note of ₹ 20,000
payable after 60 days in favour of News Ltd. and the balance amount was paid by issue of
equity shares of ₹ 100 each at a premium of ₹ 125 per share, Pass necessary Journal entries
for the above transactions in the books of Sundar Ltd.

16 Happy Ltd. purchased a running business from M/s Joy and Laugh for a sum of 30,00,000
payable ₹24,00,000 in fully paid equity shares of 10 each and balance through cheque
The assets and liabilities include following:
Plant and Machinery ₹15,00,000 Stock-in-Trade ₹6,00,000
Land and Building ₹ 800000 Equipments to ₹6,00,000
Sundry Debtors ₹ 100000 Sundry Creditors ₹4,00,000
You are required to pass necessary journal entries in the company's books.

17 Dark Lamps Ltd. issued 50,000 shares of ₹ 10 each as fully paid-up to the promoters for
their services to set-up the company. It also issued 2,000 shares of ₹ 10 each credited as Fully
Paid-up to the underwriters of shares for their services. Journalise these transactions.

18 Bharat Ltd. issued 10,000 Equity Shares of ₹10 each at par payable as: On application ₹2
per share, on allotment ₹ 3 per share, on first call ₹ 3 per share and on second call ₹2 per
share. Sri Das was allotted 100 shares. Give necessary Journal entries relating to the
forfeiture of shares in each of the following alternative cases:
Case (i) If Sri Das failed to pay allotment money and his shares were forfeited.
dend bite of Shares
Case (ii) If Sri Das failed to pay allotment money and on his subsequent failure to pay the first
call, his shares were forfeited.
Case (iii) If Sri Das failed to pay the first call and on his subsequent failure to pay the final call,
his shares were forfeited.

19 Journalise the following transactions in the books of Kunal Ltd:

(i) 50 shares of ₹ 10 each issued at par were forfeited for the non-payment of the final call of ₹
3 per share. These shares were reissued @ ₹ 9 per share fully paid-up.
(ii) 30 shares of ₹100 each issued at a premium of ₹ 20 per share payable with allotment were
forfeited for the non-payment of allotment money of ₹50 per share (including premium). The
first and final call of ₹ 40 was not made on these shares. The forfeited shares were reissued @
140 per share fully paid up.

20 JCV Ltd. forfeited 200 shares of ₹10 each issued at a premium of 2 per share for the non-
payment of allotment of ₹ 3 per share (including premium). The first and final call of ₹4 per
share has not been made yet. 50% of forfeited shares were re-issued at ₹ 8 per share fully
paid-up. Pass necessary journal entries for the forfeiture and re-issue of shares.

21 Pass necessary journal entries for forfeiture and reissue of shares in the following cases:
(1) Star India Limited forfeited 300 shares of ₹50 each, 35 has been paid, for the non-payment
of final call of 15 per share. Out of these 200 shares were reissued to Mr. Anil for 40 per share.
(2) A share of ₹20 on which ₹16 has been called up, 12 has been paid is forfeited and reissued
to M@14 per share as fully paid up.
(3) Net Solutions Ltd. forfeited 400 shares of ₹10 each 8 called up for non-payment of first call
of 3 per share. Out of these 300 shares were reissued at 7 per share as 8 per share paid up.
(4) Welcome Ltd. forfeited 200 shares of 100 each fully called up for non-payment of first call
of 25 per share and final call of 25 per share. Out of these, 100 shares were reissued at 90 per
share as fully paid up.
(5) Players Ltd. forfeited 250 shares of 10 each, fully called up on which Mr. Sunil has paid
only application and allotment money of 6 per share. All of the shares were reissued to Mr.
Anil @ 9 per share fully paid up.

22 To provide employment to the youth and to develop Baramula district. of Jammu and
Kashmir, Jyoti Power Ltd. decided to set-up a power plant. For raising funds, the company
decided to issue 8,50,000 equity shares of ₹10 each at a premium of ₹3 per share. The whole
amount was payable on application. Applications for 20,00,000 shares were received.
Applications for 3,00,000 shares were rejected and shares were allotted to the remaining
applicants on pro-rata basis.
Pass necessary journal entries for the above transactions in the books of the company and
identify any two values which the company wants to propagate.

23 ENY Ltd. with an authorised capital of 6,00,000 invited applications for 50,000 shares of 10
each payable as: 4 on application, 3 on allotment, 2 on first call and 1 on final call. There was
oversubscription and applications were received for 86,000 shares.
Allotment was made as follows:
To applicants of 25,000 shares 25,000 shares
To applicants of 6,000 shares - Nil
To applicants of 55,000 shares - 25,000 shares
Excess money on application was adjusted against the sums due on allotment and the calls.
All amounts due were subsequently received. Pass journal entries to record the above
transactions.

24 MCS Ltd. issued 40,000 shares of ₹10 each payable at ₹ 2 on application, ₹ 2 on allotment
and balance in two equal instalments.
Applications were received for 80,000 shares and the allotment was made as follows:
(1) Applications of 50,000 shares were allotted 30,000 shares.
the
(i) Applications of 30,000 shares were allotted 10,000 shares.
Neeraj to whom 600 shares were allotted from category (i) failed to pay the allotment money.
Pass the necessary journal entries up to allotment only.
25 'Sulabh Ltd.' invited applications for issuing 1,50,000 equity shares of ₹10 each at a
premium of ₹ 3 per share. The amount was payable as follows:
On application-2 per share.
On allotment-6 per share (including premium)
On first and final call-the balance.
Applications for 2,00,000 shares were received and shares were allotted on pro-rata basis to
all the applicants. Excess money received with applications was adjusted towards sums due
on allotment. Suman who had applied for 2,000 shares failed to pay the allotment and call
money. Raman failed to pay first and final call on his 500 shares. Shares of both Suman and
Raman were forfeited after the final call was made. The forfeited shares were reissued for ₹ 12
per share as fully paid up.
Pass necessary Journal Entries for the above transactions in the books of the company.

26 Bharat Tyres Ltd. invited applications for 1,00,000 equity shares of 10 each at a premium of
4 per share. The amount was payable as follows:
otment nd final Kavi, a money
On Application 6 (including 2 premium)
On Allotment 6 (including 2 premium) Balance on First and Final Call. Applications for
1,50,000 shares were received. Allotment was made to all the applicants on pro rata basis.
Subodh, to whom 200 shares were allotted failed to pay allotment and call money. Vikram, to
whom 100 shares were allotted failed to pay the call money. These shares were forfeited and
afterwards reissued @ 8 per share fully paid up. Pass the necessary journal entries.

27 Himalaya Limited issued for public subscription of 1,20,000 equity shares of ₹10 each at a
premium of ₹ 22 per share payable as under:
On application ₹ 3 per share; on allotment (including premium) ₹ 5 per share; on first call
per share; on second and final call ₹ 2 per share. Applications were received for 1,60,000
shares. Allotment was made on pro rata basis. Excess money on application was adjusted
against the amount due on allotment. Rohan, to whom 4,800 shares were allotted, failed to pay
for the two calls. These shares were subsequently forfeited after the second call was made. All
the shares forfeited were reissued to Teena as fully paid at ₹ 7 per share.
Record journal entries in the books of the company to record these transactions relating to
share capital.

28 P & J Ltd. was established with an authorised capital of ₹10,00,000 divided into shares of ₹
10 each. Out of these 10,000 shares were issued as fully paid up being the payment of
machinery purchased. 32,000 shares were issued and subscribed for by the public payable as
₹ 4 on application, ₹ 2 on allotment, ₹ 2 on first call and ₹ 2 on final call.
The amounts received in respect of those shares were as follows:
On 24,000 shares full amount
On 5,000 shares ₹ 8 per share
On 2,000 shares ₹ 16 per share
On 1,000 shares ₹ 4 per share
The directors forfeited 3,000 shares on which less than ₹ 8 per share has been paid and
reissued to Kamal at ₹ 8 per share as fully paid.
Pass journal entries in the books of the company for the record of the above transactions.

29 . Newbie Ltd. was registered with an authorized capital of ₹5,00,000 divided into 50,000
equity shares of ₹10 each. Since the economy was in robust shape, the company decided to
offer to the public for subscription of 30,000 equity shares of ₹10 each at a premium of ₹20 per
share. Applications for 28,000 shares were received and allotment was made to all the
applicants. All calls were made and duly received except the final call of₹ 2 per share on 200
shares. Show the "Share Capital' in the Balance Sheet of Newbie Ltd.as per Schedule III of the
Companies Act 2013. Also prepare 'Notes to Accounts' for the same.

30 'David Ltd.' issued ₹40,00,000 equity shares of ₹10 each out of its registered capital of
₹10,00,00,000. The amount payable on these shares was as follows:
On application - *1 per share
On allotment - 2 per share
On first call₹3 per share
On second and final call - 4 per share
All calls were made and were duly received, except the second and final call on 1,000 shares
held by Vipul. These shares were forfeited.
Present the 'Share Capital' in the Balance Sheet of the company as per Schedule III Part I of
the Companies Act, 2013. Also prepare 'Notes to Accounts'.

31 On 1st April, 2012, Blue Heaven Ltd. was formed with an authorised capital of 20,00,000
divided into 2,00,000 equity shares of ₹10 each. The company issued prospectus inviting
applications for 1,80,000 equity shares. The company received applications for 1,70,000 equity
shares. During the first year, 8 per share was called. Arun holding 2,000 shares and Varun
holding 4,000 shares did not pay the first call of 2 per share. Varun's shares were forfeited
after the first call and later on 3,000 of the forfeited shares were re-issued at 6 per share, 8
called up.
Show the following
(a) Share Capital in the Balance Sheet of the company as per Schedule III, Part I of the
Companies Act, 2013.
(b) Also prepare 'Notes to Accounts' for the same.