Advertisements
Advertisements
प्रश्न
Paradise Ltd. purchased assets of ₹ 4,40,000 from Suguna Furniture Ltd. It issued equity shares of ₹ 10 each fully paid in satisfaction of their claim. What entries will be made if such issue is:
- at par and
- a premium of 10%.
उत्तर
Calculation of the number of shares to be issued
Total amount = Rs. 4,40,000
Face value of share = Rs. 10
No. of. shares to be issued = `"Amount"/"Issued price"`
(a) at par. = `("Rs." 4,40,000)/("Rs." 10)` = 44,000 shares
(b) at a premium of 10% = 10 + `10 xx 10/100`
= Rs. 10 + 1
= Rs. 11
`= (4,40,000)/11` = 40,000 shares
| Date | Particulars | L.F. | Debit Rs. | Credit Rs. |
| (a) | at par | |||
| (1) | Assets A/c Dr. To Suguna Furniture A/c [Asset purchased] |
4,40,000 | 4,40,000 | |
| (2) | Suguna Furniture Ltd A/c Dr. To Equity share capital A/c (44,000 x Rs.10) [Issue of shares for consideration other than cash] |
4,40,000 | 4,40,000 | |
| (b) | at premium of 10% | |||
| (1) | Assects A/c Dr. To Suguna Furniture Ltd [Asserts purchased] |
4,40,000 | 4,40,000 | |
| (2) | Suguna Furniture Ltd A/c Dr. To Equity share capital A/c (40,000 x Rs.10) To Securities premium A/c [Issue of shares at a premium for consideration other than cash] |
4,40,000 | 4,00,000 40,000 |
APPEARS IN
संबंधित प्रश्न
State any three purposes other than 'issue of bonus shares' for which securities premium can be utilized.
For issuing shares at discount a company has to fulfil many conditions. State any three such conditions
'Cheques and drafts in hand' are not considered while preparing cash flow statement. Why?
Answer briefly of the following question :
What is the minimum price at which a company can reissue its forfeited shares which were originally issued
at par?
The following balances have been extracted from the books of Vanity Ltd. as at 31st March, 2017:
Trial Balance as at 31st March, 2017
| Particulars | Debit | Credit |
| Equity Share Capital (5,000 shares of ` 100 each fully paid) | 5,00,000 | |
| Fixed Assets | 7,30,000 | |
| Reverses and Surplus | 2,00,000 | |
| Inventories | 50,000 | |
| Cash and Bank Balances | 1,70,000 | |
| Creditors | 40,000 | |
| Bills Payable | 20,000 | |
| Underwriting Commission on issue of shares | 10,000 | |
| 5% Debentures (1/5 of the Debentures to be redeemed on 31st March, 2018) | 2,00,000 | |
| Proposed Dividend | 12,000 | |
| Interest accrued and due on 5% Debentures | 8,000 | |
| Trade Receivables | 20,000 | |
| Total | 9,80,000 | 9,80,000 |
Modern Chemicals Co. Ltd. made an issue of 60,000 shares of Rs. 20 each payable as follows :
On application Rs. 5 per share
On allotment Rs. 5 per share
On first call Rs. 4 per share
On second call Rs. 3 per share
The company received applications for 65,000 shares of which applications for 5,000 shares were
rejected and money refunded.
All the shareholders paid up to second call except one shareholder, Mr. Bhupendra, the allotee of
100 shares, who did not pay the amount of the second call.
Give Journal Entries in the books of Modern Chemicals Co., Ltd.
Mr. Prabhakar is a retail trader. He had no proper methods of accounting. But the following information is made available to you.
|
Particulars |
Amount |
Amount |
|
Sundry Debtors Sundry Creditors Bank overdraft Stock Cash in hand Bills receivable Furniture Motor Van Computer 10% Govt. Bonds |
45,000 60,000 80,000 65,000 2,000 60,000 10,000 80,000 60,000 − |
50,000 70,000 40,000 80,000 8,000 80,000 10,000 80,000 1,20,000 10,000 |
Adjustments:
(1) On 1st October, 2009 Mr. Prabhakar had withdrawn Rs. 40,000 for his personal use.
(2) 10% Government Bonds were purchased of Rs. 10,000 on 1st October, 2009.
(3) He had also withdrawn Rs. 30,000 for his daughter's marriage.
(4) Depreciate furniture by 10% and write off Rs. 2,000 from motor van.
(5) Rs 2,000 is written off as bad debts and provide 5% R.D.D. on debtors.
(6) Allow interest on capital at 10% p.a.
(7) Charge interest on drawings Rs. 2,000.
Prepare after taking into consideration the adjustments:
Closing statement of affairs of 31.3.2010.
Answer in one Sentence only :
Define securities premium.
State, whether the following statements is True or False.
Shares are issued for cash only.
An extract of the Balance Sheet of Nova Ltd. shows:
| Particulars | 31.03.2023 (₹) | 31.03.2022 (₹) |
| Share Capital (Equity shares @ ₹ 10 each) | 8,00,000 | 5,00,000 |
| Securities Premium | 70,000 | 1,70,000 |
During the year 2022-23, the company raised its share capital by issuing bonus shares to the shareholders at the beginning of the year in the ratio of 1 : 5 (one bonus share was issued for every five equity shares). The balance shares were issued for cash to the public.
How many shares were issued for cash by the company?
