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प्रश्न
Ankit Ltd. issued 20,000 equity shares of 10 each at a premium of ₹ 2 per share, payable as:
| On Application | : | ₹ 3 |
| On Allotment | : | ₹ 5 (including premium) |
| On First Call | : | ₹ 2 |
| On Second and Final Call | : | ₹ 2 |
Vijay was allotted 500 shares. Pass the necessary Journal entries relating to the forfeiture of shares in following cases.
| Case I | Vijay did not pay allotment money and his shares were immediately forfeited. |
| Case II | Vijay did not pay allotment and first call, his shares were forfeited after first call. |
| Case III | Vijay failed to pay first call and his shares were forfeited immediately. |
| Case IV | Vijay failed to pay both the calls and his shares were forfeited. |
उत्तर
Case I:
In the books of Ankit Ltd.
Journal
|
Date |
Particulars |
|
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
|
Share Capital A/c (500 × 6) |
Dr. |
3,000 |
|
|
|
|
Securities Premium Reserve A/c (500 × 2) |
Dr. |
1,000 |
|
|
|
|
To Share Forfeiture A/c (500 × 3) |
|
|
1,500 |
|
|
|
To Share Allotment A/c (500 × 5) |
|
|
2,500 |
|
|
|
(Being 500 shares forfeited for non-payment of allotment money) |
Case II:
In the books of Ankit Ltd.
Journal
|
Date |
Particulars |
|
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
|
Share Capital A/c (500 × 8) |
Dr. |
4,000 |
|
|
|
|
Securities Premium Reserve A/c (500 × 2) |
Dr. |
1,000 |
|
|
|
|
To Share Forfeiture A/c (500 × 3) |
|
|
1,500 |
|
|
|
To Share Allotment A/c (500 × 5) |
|
|
2,500 |
|
|
|
To Share First Call A/c (500 × 2) |
|
|
1,000 |
|
|
|
(Being 500 shares forfeited for non-payment of allotment and first call) |
|
|
Case III:
In the books of Ankit Ltd.
Journal
|
Date |
Particulars |
|
L.F. |
Debit Amount |
Credit Amount |
|
|
Share Capital A/c (500 × 8) |
Dr. |
4,000 |
|
|
|
|
To Share Forfeiture A/c (500 × 6) |
|
|
3,000 |
|
|
|
To Share First Call A/c (500 × 2) |
|
|
1,000 |
|
|
|
(Being 500 shares forfeited for non-payment of first call) |
|
|
|
Case IV:
In the books of Ankit Ltd.
Journal
|
Date |
Particulars |
|
L.F. |
Debit |
Credit |
|
|
Share Capital A/c (500 × 10) |
Dr. |
5,000 |
|
|
|
|
To Share Forfeiture A/c (500 × 6) |
|
|
3,000 |
|
|
|
To Share First Call A/c (500 × 2) |
|
|
1,000 |
|
|
|
To Share Second and Final Call (500 × 2) |
|
|
1,000 |
|
|
|
(Being 500 shares forfeited for non-payment of first and second call) |
|
|
|
APPEARS IN
संबंधित प्रश्न
Preference shares carry dividend at .......................... rate.
- Fixed
- Fluctuating
- Lower
The type of shareholders who can participate in the management of the company.
Equity Shares and Preference Shares.
Pass necessary journal entries in the following cases
Kay Ltd. converted 3,000, 12% debentures of Rs 100 each issued at a premium of 10% into equity shares of Rs 100 each issued at a premium of 25%.
Pass necessary journal entries in the following cases
Jay Ltd. redeemed 1,500, 12% debentures of Rs 1,000 each issued at a discount of 10% by converting them into equity shares of Rs 50 each issued at par.
What is meant by a 'Share' ? Give any two differences between 'Preference Shares' and 'Equity Shares'.
Define 'preference shares'. Explain various types of preference shares.
A person who purchases shares of a company is known as _______ of the company.
Define Equity Shares and explain its features.
Write notes on Features of equity shares.
Write a letter to the debenture holder informing him/her about the conversion of debentures into equity shares.
Match the correct pairs.
| Group A | Group B | ||
| a) | Equity share capital | 1) | Link between depository and investor. |
| b) | Transfer of shares | 2) | Redeemable capital. |
| c) | Depository participant | 3) | Optimistic about rise in prices of securities. |
| d) | Bonus share | 4) | Conversion into equity shares. |
| e) | Bear | 5) | Capitalisation of profit. |
| 6) | Sale or gift of shares to another person. | ||
| 7) | Pessimistic about fall in prices of securities. | ||
| 8) | Permanent capital | ||
| 9) | Transfer of shares by operation of law. | ||
| 10) | Link between SEBI and depository. |
Write a word or term or phrase which can substitute each of the following statements:
Type of preference shares which can be redeemed after a certain period of time.
Equity shares are paid dividend at ____________ rate.
A company must issue __________ shares.
Long Answer Question
What is a ‘Preference Share’? Describe the different types of preference shares.
Lennova Ltd. has authorised share capital of ₹ 1,00,00,000 divided into 1,00,000 Equity Shares of ₹ 100 each . It has existing issued and paid up capital of ₹ 25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under:
| On Application: | ₹ 30 |
| On Allotment: | ₹ 60 and |
| On Call: | Balance Amount. |
The issue was fully subscribed and allotment was made to all the applicants . The company did not make the call during the year.
Show share capital of the company in the Balance Sheet of the Company.
Bharat Ltd made the first call of ₹ 2 per share on its 1,00,000 Equity Shares on 1st March , 2006. Ashok, a shareholder, holding 800 shares paid the second and final call amount along with the first call money. The second and final call amount was ₹ 3 per share. Pass necessary journal entries for recording the above using the Calls-in Advance Account.
2,000 Equity Shares of ₹ 10 each were issued to Limited from whom assets of ₹ 25,000 were acquired .
Pass Journal entry.
'Amrit Dhara Ltd.' issued 800 Equity Shares of ₹ 100 each at a premium of 25% as fully paid-up in consideration of the purchase of plant and machinery of ₹ 1,00,000.
Pass entries in company's Journal.
Goodluck Ltd purchased machinery costing ₹ 10,00,000 from Fair Deals Ltd. The company paid the price by issue of Equity Shares of ₹ 10 each at a premium of 25%.
Pass necessary Journal entries for the above transactions in the books of Goodluck Ltd.
Sona Ltd. purchased 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.
Light 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.
Sure Ltd. purchased a running business from M/s. Rai Brothers for a sum of ₹ 15,00,000 payable ₹ 12,00,000 in fully paid shares of ₹ 10 each and balance through cheque.
The assets and liabilities consisted of the following:
| Plant and Machinery | ₹ 4,00,000 | Stock | ₹ 4,00,000 |
| Building | ₹ 4,00,000 | Cash | ₹ 3,00,000 |
| Sundry Debtors | ₹ 3,00,000 | Sundry Creditors | ₹ 2,00,000 |
You are required to pass necessary Journal entries in the company's books.
Raja Ltd. invited applications for issuing 50,000 Equity Shares of ₹ 10 each . The amount was payable as follows:
| On application --- ₹ 3 per share On allotment --- ₹ 5 per share, On first and final call --- Balance. |
Applications for 70,000 shares were received . Allotment was made to all applicants on pro rata basis. Excess money received on application was adjusted towards sums due on allotment . Ramesh, who had applied for 700 shares , did not pay the allotment money and on his failure to pay the allotment money his shares were forfeited. Afterwards , the first and the final call was made . Adhar, who had been allotted 500 shares, did not pay the first and final call . His shares were also forfeited . Out of the forfeited shares 900 shares were reissued at ₹ 8 per share as fully paid-up . The reissued shares included all the shares of Ramesh.
Pass necessary journal entries for the above transactions in the books of the company.
State, with reasons, whether the following statement is True or False
Handling demat shares is very time consuming.
State, with reason, whether the following statement is True or False.
Preference shareholders have normal voting rights.
Equity shares and Preference shares.
Explain the features of preference shares.
Distinguish between equity shares and preference shares.
Equity share holders are ______.
When Equity Shares dominate the capital structure, the capital is considered as high geared.
What are preference shares?
Anjum is a first-time investor wanting to invest 10 lakhs in long term capital appreciation. She is willing to take risks in return for high growth.
Which type of security should she invest in? Suggest any four features of this type of security.
