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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
Equity shareholders are real owners and controllers of the company
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%.
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%.
Define 'preference shares'. Explain various types of preference shares.
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.
Write features of 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.
What is equity share? Explain the feature of equity shares.
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 |
Long Answer Question
What do you mean by the term ‘share’? Discuss the type of shares, which can be issued under the Companies Act, 2013 as amended to date.
Long Answer Question
What is a ‘Preference Share’? Describe the different types of preference shares.
The Adersh Control Device Ltd was registered with the authorised capital of Rs 3,00,000 divided into 30,000 shares of Rs 10 each, which were offered to the public. Amount payable as Rs 3 per share on application, Rs 4 per share on allotment and Rs 3 per share on first and final call. These share were fully subscribed and all money was dully received. Prepare journal and Cash Book.
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.
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.
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.
Sandesh Ltd. took over the assets of ₹ 7,00,000 and liabilities of ₹ 2,00,000 from Sanchar Ltd. for a purchase consideration of ₹ 4,59,500. ₹ 8,500 were paid by accepting a draft in favour of Sanchar Ltd. payable after three months and the balance was paid by issue of equity shares of ₹ 10 each at a premium of 10% in favour of Sanchar Ltd.
Pass necessary journal entries for the above transactions in the books of Sandesh Ltd.
SHARE STOCK
Equity shares and Preference shares.
Explain the features of preference shares.
Answer the question.
Explain the advantages of equity shares, as a source of finance.
Explain any three disadvantages of issuing equity shares, from the Company's point of view.
According to Companies Act company cannot issue its share at ________.
Which type of shares is not convertible?
From the following Balance Sheets of Vinayak Ltd. as of 31st March 2021, Prepare a Common-size Balance Sheet.
| Vinayak Ltd. Balance Sheet as of 31st March, 2021 | |||
| Particulars | Note no. | 31.3.2021 (₹) | 31.3.2020 (₹) |
| I EQUITY AND LIABILITIES | |||
| 1. Shareholder’s Funds: | |||
| a. Share Capital | 30,50,000 | 20,00,000 | |
| b. Reserve and Surplus | 2,80,000 | 6,00,000 | |
| 2. Current Liabilities: | |||
| a. Trade Payable | 6,70,000 | 4,00,000 | |
| Total | 40,00,000 | 30,00,000 | |
| II ASSETS | |||
| 1. Non-Current Assets: | |||
| a. Fixed Assets: | |||
| i. Tangible Assets | 16,00,000 | 12,00,000 | |
| ii. Intangible Assets | 2,00,000 | 3,00,000 | |
| 2. Current Assets | |||
| a. Inventories | 8,00,000 | 3,00,000 | |
| b. Trade Receivables | 12,00,000 | 10,00,000 | |
| c. Cash and Cash Equivalents | 2,00,000 | 2,00,000 | |
| Total | 40,00,000 | 30,00,000 | |
When Equity Shares dominate the capital structure, the capital is considered as high geared.
What are preference shares?
