Balbharati solutions for Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board chapter 8 - Company Accounts - Issue of Shares [Latest edition]

The balance of Share Forfeiture A/c is transferred to _________ account after re-issue of these share.

Premium received on issue of shares is shown to __________.

Shareholders get ___________ on shares.

The document inviting to subscribe to the shares of a company is __________.

As per SEBI guidelines minimum amount payable on share application should be ___________ of Nominal Value of shares.

When shares are forfeited the Share Capital Account is _________.

The liability of shareholder in Joint Stock Company is _________.

The Share Capital which a company is authorised to issue by its Memorandum of Association is __________.

The unpaid amount on allotment and calls may be transferred to _____________ account.

There must be provision in ___________ for forfeiture of shares.

Give one word/term/phrase for the following statement.

Amount called-up on shares by the company but not received.

Give one word/term/phrase for the following statement.

Issue of share at its face value

Give one word/term/phrase for the following statement.

The person who purchase the shares of a company.

Give one word/term/phrase for the following statement.

The form of business organisation where huge amount of capital can be raised.

Give one word/term/phrase for the following statement.

The capital which is subscribed by the public.

Give one word/term/phrase for the following statement.

The shares having preferential right at the time of winding up of the company.

Give one word/term/phrase for the following statement.

The shares on which dividend is not fixed.

Give one word/term/phrase for the following statement.

The part of subscribed capital which is not called-up by the company.

State true or false with reason.

Directors can forfeit the shares for any reason.

State true or false with reason.

Once the application money is received, directors can immediately proceed for allotment of shares.

State true or false with reason.

Joint-stock company form of the business organisation came into existence after industrial revolution.

State true or false with reason.

Equity shareholders get guaranteed rate of dividend every year.

State true or false with reason.

Face value of shares and market value of shares is always same.

State true or false with reason.

Sweat shares are issued to public.

State whether you agree or disagree with following statement:

In case of Pro-rata allotment the excess application money received must be refunded.

State whether you agree or disagree with following statement.

Calls in Advance account is shown on the Asset side of the Balance sheet.

State whether you agree or disagree with following statement:

The Authorised capital is also known as Nominal Capital.

State whether you agree or disagree with following statement:

Paid-up capital can be more than Called up Capital.

State whether you agree or disagree with following statement

Joint Stock company can raise huge amount of capital.

State whether you agree or disagree with following statement:

When shares are forfeited Shares Capital Account is credited.

State whether you agree or disagree with following statement:

Directors can re-issue forfeited shares.

State whether you agree or disagree with following statement:

When the issued price of share is ₹ 12 and face value is ₹ 10, the share is said to be issued at premium.

State whether you agree or disagree with following statement:

Public limited company can issue its share without issuing its prospectus.

State whether you agree or disagree with following statement:

Shares can be issued for consideration other than cash.

Answer in one sentence only.

What is Preference shares?

Answer in one sentence only.

What is Registered Capital?

Answer in one sentence only.

What do you mean by reserve capital?

Answer in one sentence only.

What is Over subscription of shares?

Answer in one sentence only.

Which account is debited when share first call money is received?

Answer in one sentence only.

When are shares allotted on pro-rata basis?

Answer in one sentence only.

What is Forfeiture of Shares?

Answer in one sentence only.

What is Calls-in-Arrears?

Answer in one sentence only.

What do you mean by Shares Issued at Premium?

Answer in one sentence only.

What is Paid-up Capital?

When face value of the share is ₹ 100 and issued price is ₹ 120, then it is said that the shares are issued at _________.

___________ Capital is the Capital which a company is authorised to issue by its Memorandum of Association.

The difference between Called-up Capital and Paid-up Capital is known as ___________.

___________ share holders get fixed rate of dividend.

____________ shareholders are the real owners of the company.

__________ form of business organisation in which Capital is raised through the issue of shares.

___________ Capital is the part of issued capital which is subscribed by the public.

The part of Authorised Capital which is not issued to the public is known as ___________ Capital.

One shareholder holding 500 equity shares paid share application money @ ₹ 3 Allotment money @ ₹ 4 per share and failed to pay final call of ₹ 3 per share, his shares were forfeited. Calculate the amount of share forfeiture.

10000 equity shares of ₹ 10 each issued at 10% premium. Calculate the total amount of share premium.

Company received excess application for 5000 shares @ ₹4 per share. Applications of 1000 shares were rejected and pro-rata allotment was made. Calculated the amount of application money adjusted with allotment.

80000 Equity shares of ₹ 10 each issued and fully subscribed and called up at 20% premium. Calculate the amount of Equity share Capital.

Directors issued 20000 equity shares of ₹ 100 each at par. These were fully subscribed and called up. All money were received except one shareholder holding 100 equity shares failed to pay final call of ₹ 20 per share. Calculate the amount of paid-up capital of the company

Company sends Regret letter for 100 shares and Allotment letter to 25000 shareholders. Application money was ₹ 20 per share. Calculate the amount of application money which company is refunding.

Vijay Ltd. was registered with an authorised capital of ₹ 15,00,000 divided into 1,50,000 equity shares of ₹ 10 each.

Company issued 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share.

Company received applications for 80,000 equity shares and were allotted the shares.

Company received application money ₹ 3 per share, allotment money ₹ 4 per share (Including premium), and first call money ₹ 3 per share.

The Directors have not made final call of ₹ 2 per share. All money were received except one shareholder holding 500 shares did not pay first call.

Show Authorised Capital, Issued Capital, Subscribed Capital, Called-up Capital, Paid-up Capital, Calls in Arrears, and Share Premium amount in company balance sheet.

Anand Company Limited issued 1,00,000 Preference shares of ? 10 each payable as - On

On Application ₹ 4

On Allotment ₹ 3

On First call ₹ 2

On Second and Final call ₹ 1

Company received application for all these share and received all money.

Pass Journal Entries in the books of Anand Company Ltd.

Rohini Company Limited issued 25000 equity shares of ₹ 100 each payable as follows -

On Application ₹ 20

On Allotment ₹ 30

On First call ₹ 20

On Second & Final call ₹ 30

Applications were received for 22,000 equity shares and allotment of shares were made to them. All money was received by the company.

Pass Journal Entries in the books of Rohini Co. Ltd.

Deepak Manufacturing co. Ltd. issued a prospectus inviting applications for 1,00,000 equity shares of ₹ 10 each payable as follows

₹ 2 on Application

₹ 4 on Allotment

₹ 2 on first call

₹ 2 on final call

Application were received for 1,20,000 equity shares. The Directors decided to reject excess applications and refunded application money on that. Company received all money.

Pass Journal Entries in the books of a company.

Sucheta Company Limited issued ₹ 20,00,000 new capital divided into ₹ 100 equity shares at a Premium of  ₹ 20 per share payable as ₹ 10 on Application ₹ 40 on Allotment and ₹ 10 premium ₹ 50 on Final call and ₹ 10 premium.

The issue was oversubscribed to the extent of 26000 equity shares. The applicants on 2000 shares were sent letter of regret and their application money was refunded. Remaining applicants were alloted share on pro-rata basis. All the money due on Allotment and Final call was duly received.

Make necessary Journal entries in the books of Sucheta Company Ltd.

Suhas Limited issued 10000 equity shares of ₹ 10 each at a premium of ₹ 2 per share payable ₹ 3 on application, ₹ 5 (including premium) on allotment and the balance in two calls of equal amount. Applications were received for ll,000 equity shares and pro-rata allotment was made for all the applicants. The excess application money was adjusted towards allotment. Mrs. Shobha who were allotted 200 equity shares failed to pay F/F/C and her shares were forfeited after the final call

Show Journal entries in the books of Suhas Ltd. and also show its presentation in Balance sheet.

Subhash Company Limited issues 2000 Equity shares of ₹100 each payable as ₹ 30 on application, ₹ 30 on allotment, ₹ 40 on first and final call. All the shares were subscribed and duly allotted. Company made all the calls. All cash was duly received except the first & final call on 100 equity shares. These shares were forfeited by company and were re-issued as fully paid for ₹75 per share.

Show the Journal entries in the books of Subhash Company Ltd.

Pass Journal entries for the forfeiture and re-issue of shares in the following cases.

A) Asha Ltd. forfeited 100 equity shares of ₹ 20 each fully called up for non-payment of first call of ₹ 3 per share and final call of ₹ 5 per share. 80 shares of these were reissued at ₹ 15 per share fully paid

B) Bhakti Ltd. forfeited 100 equity shares of ₹ 10 each, ₹ 6 called-up on which the shareholder paid application and allotment of ₹ 5 per share. Of these 80 shares were re-issued as fully paid-up for ₹ 6 per share.

C) Konark Ltd. forfeited 50 shares of ₹ 10 each, ₹ 8 called-up. The shareholder failed to pay first call of ₹ 3 per share. Later on 30 shares of these were re-issued at ₹ 7 per share.