English

Answer in one sentence only. What is Calls-in-Arrears? - Book Keeping and Accountancy

Advertisements
Advertisements

Question

Answer in one sentence only.

What is Calls-in-Arrears?

One Line Answer

Solution

Non-payment of allotment or call money by the applicants inspite of repeated reminders are called Calls-in-Arrears.

shaalaa.com
Accounting for Share Capital
  Is there an error in this question or solution?
Chapter 8: Company Accounts - Issue of Shares - Exercise 8.1 (Objective Questions) [Page 340]

APPEARS IN

Balbharati Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 8 Company Accounts - Issue of Shares
Exercise 8.1 (Objective Questions) | Q 1. (E) 8. | Page 340

RELATED QUESTIONS

'Sangam Woolens Ltd.', Ludhiana, are the manufacturers and exporters of woollen garments. The company decided to distribute free of cost woollen garments to 10 villages of Lahaul and Spiti District of Himachal Pradesh. The company also decided to employ 50 young persons from this village in its newly established factory. The company issued 40,000 equity shares of Rs 10 each and 1,000 9% debentures of Rs 100 each to the vendors for the purchase of machinery of Rs 5,00,000. Pass necessary Journal Entries. Also, identify anyone value that the company wants to communicate to the society.


Deepak, Farukh and Lilly were partners in a firm sharing profits in the ratio of 3:2:1. On 28.2.2015 Farukh retired from the firm. On Farukh's retirement, there was a balance of `12,000 in Workmen's Compensation Reserve which was no more required. On Farukh's retirement this amount will be :

(a) Debited to the Capital accounts of all the partners in their profit sharing ratio.
(b) Credited to the Capital accounts of all the partners in their profit sharing ratio.
(c) Credited to the Capital accounts of Deepak and Lilly in their profit sharing ratio.
(d) Credited to the Capital account of Farukh.


Akash Ltd. is registered with an authorized Capital of Rs 8,00,00,000 divided into equity shares of Rs 10 each. Subscribed and fully paid up share capital of the company was Rs 4,00,00,000. For providing employement to the local youth and for the development of the rural areas of the Jammu nad Kashmir State the company decided to set up a food processing unit in Anantnag district. The Company also decided to open skill development centres in Ladakh, Srinagar and Punch. To meet its new financial requirements the company decided to issue 1,00,000 equity shares of Rs 10 each and 10,000, 9% debentures of Rs 100 each. The debentures were redeemable after five years. The issue of equity shares and debentures was fully subscribed. A shareholder holding 1,000 shares failed to pay the final call of Rs 2 per share.

Present the share capital in the Balance Sheet of the company as per the provisions of Schedule III of the Companies Act, 2013. Also, identify any two values that the company wishes to propagate.

XXL Ltd. converted its 500, 9% debentures of Rs 100 each issued at a dsicount of 8% into equity shares of Rs 10 each issued at a premium of 25%. Discount on issue of debentures has not yet been written off.
Showing your workings clearly pass necessary Journal Entries on conversion of 9% debentures into equity shares.   


'Payment and Receipt of interest and dividend' is classified as which type of activity while preparing cash flow statement?


Suman and Sudha were partners in  a firm sharing profits equally. Their fixed capitals were Rs 50,000 and Rs 25,000 respectively. The partnership deed provided interest on capital at the rate of 12% per annum. For the year ended 31stMarch, 2016, the profits of the firm were distributed without providing interest on capital.
Pass necessary adjustment entry to rectify the error. 


Z Ltd. forfeited 1000 equity shares of Rs 10 each for the non-payment of the final call of Rs 2 per share. Calculate the maximum amount of discount at which these shares can be reissued.


Share forfeited balance is transferred to Capital Reserve Account.


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 __________.


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 capital which is subscribed by the public.


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

The shares on which dividend is not fixed.


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:

The Authorised capital is also known as Nominal Capital.


State whether you agree or disagree with following statement:

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


Answer in one sentence only.

What is Registered Capital?


Answer in one sentence only.

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


Answer in one sentence only.

What do you mean by Shares Issued at Premium?


Answer in one sentence only.

What is Paid-up Capital?


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


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


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


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.


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.


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.


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.


In which of the following situation Companies Act 2013 allows for issue of shares at discount?


As per Section 52 of Companies Act 2013, Securities Premium Reserve cannot be utilised for ______.


Radhey Ltd. took over assets of ₹ 14,00,000 and liabilities of ₹ 6,00,000 of Krishna Ltd. Radhey Ltd. paid the purchase consideration by issuing 10,000, 8% Debentures of 100 each at a premium of 10%.

Pass necessary journal entries in the books of Radhey Ltd.


1000 shares issued @10% Premium considering face value for ₹ 10/- Calculate Premium.


Alankrit Ltd. offered for public 10,000 equity shares of ₹ 10 each at a premium of ₹ 12/- per share payable as under:

  1. On Application -  ₹ 4
  2. On Allotment - ₹ 4 (including premium)
  3. On First & Final Call- Balance Amount

Company received all the money. The issue was fully subscribed. Give Journal Entries to record above transactions and also show in balance sheet.


Pass necessary journal entries in the books of Z Ltd. for the following transaction:

The company has a balance of ₹ 60,000 in securities premium reserve account. Loss on issue of debentures ₹ 1,00,000 was written off as per the provisions of the Companies Act. 2013.


Ganesh draws a bill for ₹ 40,000 on 15th January, 2020 for 2 months. He discounted the bill with Bank of India @ 15% p.a. on the same day. Calculate the amount of discount.


Sameer and Company Limited invited applications for 25,000 Equity shares of ₹ 100 each payable as:

₹ 25 on application

₹ 50 on allotment

₹ 25 on first and final call

Applications were received for 30,000 Equity shares and pro-rata allotment were made to all. All the money was duly received except first and final call on 2,500 Equity shares. Enter the above transactions in the books of Sameer and Company Limited.


When a company issues shares at a premium, the company can collect securities premium along with the following :


Which of the following statements is true?


Narmada Ltd. has an authorised capital of ₹ 10,00,000 divided into equity shares of ₹ 10 each. The company issued a prospectus inviting applications for issuing 80,000 equity shares. The company received applications for 75,000 equity shares. All calls were made and were duly received except the first and final call of ₹ 2 per share on 5,000 shares held by Arti. These shares were forfeited.

  1. Present the share capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013.
  2. Also prepare 'Notes to Accounts' for the same.

Find the odd one:


Akasha Company Limited issued 25,000 equity shares of ~ 10 each payable as follows:

On Application ₹ 2
On Allotment ₹ 2
On First call ₹ 3
On Final call ₹ 3

Applications were received for 24,000 equity shares and allotment of shares were made to them. All money was received by the company.
Pass Journal Entries in the books of Akasha Company Limited.


Subscription received in current year is ₹ 1,20,000. Current year's outstanding subscription is ₹ 20,000 and subscription received in advance is ₹ 10,000. Find out net subscription amount of current year


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×