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प्रश्न
A limited company offered for subscription of 1,00,000 equity shares of Rs 10 each at a premium of Rs 2 per share. 2,00,000. 10% Preference shares of Rs 10 each at par. The amount on share was payable as under :
|
|
Equity Shares |
Preference Shares |
|
On Application |
Rs 3 per share |
Rs 3 per share |
|
On Allotment |
Rs 5 per share |
Rs 4 per share |
|
|
(including a premium) |
|
|
On First Call |
Rs 4 per share |
Rs 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:
उत्तर
Books of A Ltd.
Journal
| Date | Particulars | L.F | Debirt Amount Rs | Credit Amount Rs |
|
Dr Equity Share Application A/c 10% Preference Share Application A/c To Equity Share Capital A/c To 10% Preference Share Capital A/c (Application money transferred to Equity Share Capital ) |
3,00,000
6,00,000
|
3,00,000
6,00,000 |
||
|
Equity Share Allotment A/c 10% Preference Share Allotment A/c To Equity Share Capital A/c To Securities Premium A/c To 10% Preference Share Allotment A/c (Amount due on allotment)
|
5,00,000
8,00,000
|
3,00,000
2,00,000 8,00,000 |
||
|
Equity Share First and Final Call A/c 10% Preference Share First and Final Call A/c To Equity Share Capital A/c To 10% Preference Share Capital A/c (Amount on first and final call due)
|
4,00,000 6,00,000
|
4,00,000
6,00,000 |
||
Cash Book( Bank Column)
| Date | Particulars | J.F | Amount Rs | Date | Particulars | J.F | Amount Rs |
| Equity Share Application | 3,00,000 | Balance c/d | 32,00,000 | ||||
| 10% Preference Share Application | 6,00,000 | ||||||
| Equity Share Allotment | 5,00,000 | ||||||
| 10% Preference Share Allotment | 8,00,000 | ||||||
| Equity Share First and Final Call |
4,00,000 |
||||||
| 10% Preference Share First & Final Call | 6,00,000 | ||||||
| 32,00,000 | 32,00,000 |
APPEARS IN
संबंधित प्रश्न
Equity shareholders are real owners and controllers of the company
Jain Ltd. converted 500, 8% debentures of Rs 100 each issued at a discount of 6% into equity shares of Rs 10 each issued at a premium of Rs 25 per share. Discount on issue of 8% debentures has not yet been written off. Showing your working notes clearly, pass necessary journal entries for conversion of 8% debentures into equity shares.
Jain Motors Ltd. converted its 200, 8% debentures of Rs 100 each issued at a discount of 6% into equity shares of Rs 10 each, issued at a premium of 25%. Discount on issue of 8% debentures has not yet been written off.
Showing your working notes clearly pass necessary Journal Entries on conversion of 8% debentures into equity shares.
From the following information, calculate any two of the following ratios:
(a) Debt-Equity Ratio
(b) Working Capital Turnover Ratio and
(c) Return on Investment
Information: Equity Share capital Rs 10,00,000, General Reserve Rs 1,00,000; Profit and Loss Account after tax and interest Rs 3,00,000; 12% Debenture Rs 4,00,000; Creditors Rs 3,00,000; Land and Building Rs 13,00,000; Furniture Rs 3,00,000; Debtors Rs 2,00,00 and Cash Rs 1,10,000 and Preliminary expenses Rs 1,00,000
Sales for the year ended 31-3-2011 was Rs 30,00,000. Tax Paid 50%.
The shares which are issued to existing equty shareholders as a gift
The bonds on which rate of interest remains constant throughout the life of the bond.
Draft a letter of allotment of shares to the applicant.
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.
Write a word or terrn or phrase which can substitute each of
the following statements:
The value of share which is determined by demand and supply forces in the share market.
Select the proper option from the option given below and rewrite the sentences:
If a share of 100 is issued at 110. It is said to be issued at ___________.
Write a word or term or phrase which can substitute each of the following statements:
The use of borrowed capital for financing a business firm.
Equity shares are paid dividend at ____________ rate.
Match the correct pairs
| Group A | Group B |
| (a) Fixed Capital | 1) Share Certificate holder |
| (b) Equity share Capital | (2) Share warrant holder |
| (c) Share Certificate | (3) Investment in current assets |
| (D) Debentures | (4) Investment in fixed assets |
|
(e) Dividend warrant |
(5)Redeemable capital |
| (6) Permanent Capital | |
| (7) Bearer Document | |
| (8) Registered Document | |
| (9) Interest | |
| (10) Dividend at a fixed rate |
Fully convertible debentures are converted into __________ shares on maturity.
Long Answer Question
What is a ‘Preference Share’? Describe the different types of preference shares.
Discuss the process for the allotment of shares of a company in case of over subscription.
Sangam Ltd. invited applications for 10,000 Equity Shares of ₹ 100 each issued at par. The amount was payable on application. The issue was oversubscribed by 2,000 shares and allotment was made on pro rata basis. Pass necessary Journal entries.
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.
SHARE STOCK
Explain the features of preference shares.
Explain any three disadvantages of issuing equity shares, from the Company's point of view.
What is meant by participating preference shares?
According to Companies Act company cannot issue its share at ________.
Which of the following statement is incorrect about Preference Shares?
Equity Shares are ______.
Which is not true about Preference Shares?
What are preference shares?
Ms. Rubina, a first-time investor, does not understand the difference between securities with voting rights and securities without voting rights.
Give any five differences between the two types of securities to help her understand the difference.
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.
