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प्रश्न
Software solution India Ltd inviting application for 20,000 equity share of Rs 100 each, payable Rs 40 on application, Rs 30 on allotment and Rs 30 on call. The company received applications for 32,000 shares. Application for 2,000 shares were rejected and money returned to Applicants. Applications for 10,000 shares were accepted in full and applicants for 20,000 share allotted half of the number of share applied and excess application money adjusted into allotment. All money received due on allotment and call. Prepare journal and cash book.
उत्तर
| Date | Particulars | L.F | Debit Amount Rs | Credit Amount Rs |
|
Equity Share Application A/c To Equity Share Capital A/c To Equity Share Allotment A/c (Application money transferred to Equity Share Capital for 20,000 shares @ Rs 40 and Rs 4,00,000 is adjusted towards allotment) |
12,00,000 |
8,00,000 4,00,000
|
||
|
Equity Share Allotment A/c To Equity Share Capital A/c (Equity Share Allotment money due on 20,000 @ Rs 30 per share) |
6,00,000
|
6,00,000
|
||
|
Equity Share First and Final call A/c To Equity Share Capital A/c (Equity share on First and Final call due on 20,000 @ Rs 30 per share) |
6,00,000
|
6,00,000
|
||
Cash book (bank column)
| Date | Particulars | J.F | Amount Rs | Date | Particulars | J.F | Amount Rs |
| Equity Share | 12,80,000 | Equity Share | 80,000 | ||||
| Application Equity Share | 2,00,000 | Application Balance c/d | 20,00,000 | ||||
| Allotment Equity Share First and Final Call | 6,00,000 | ||||||
| 21,80,000 | 21,80,000 |
Working note
| Amount due on Allotment for 20,000 shares @ Rs 30 per share Money adjusted on application 10,000 shares @ Rs 40 each Money to be received on Allotment |
6,00,000 4,00,000 |
| 2,00,000 |
APPEARS IN
संबंधित प्रश्न
Preference shares carry dividend at .......................... rate.
- Fixed
- Fluctuating
- Lower
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.
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.
Jain Ltd. purchased Building for Rs 10,00,000 from Gupta Ltd. 10% of the payable amount was paid by a cheque drawn in favour of Gupta Ltd. The balance was paid by issue of Equity Shares of Rs 10 each at a discount of 10%.
Pass necessary Journal Entries in the books of Jain Ltd.
The bonds on which rate of interest remains constant throughout the life of the bond.
A person who purchases shares of a company is known as _______ of the company.
Shares which are redeemed after a certain period of time.
Define Equity Shares and explain its features.
State, with reasons, whether the following statement is True or False :
Right shares are issued to the general public.
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.
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.
A company must issue __________ shares.
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.
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:
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.
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.
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.
Distinguish between equity shares and preference shares.
According to Companies Act company cannot issue its share at ________.
Which type of shares cannot be issued as per the Companies Act, 2013?
Which type of shares is not convertible?
As per the Companies Act, 2013, companies cannot issue ______.
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 | |
What are preference shares?
Give any four types of Preferences 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.
