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Question
Answer in One Sentence only:
Where is the profit or loss on sale of asset is transferred?
Solution
Profit or loss on sale of asset is to be transferred to ‘Profit and Loss A/c.
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Long Answer Question
Describe the purposes for which a company can use ‘Securities Premium Account’
Arti Ltd. offered for subscription 20,000 shares of ₹ 10 each payable ₹ 3 on application, ₹ 5 on allotment and balance on first and final call. Applications were received for 30,000 shares. Letters of regret were issued to applicants for 5,000 shares and their application money was refunded. Application money for other 5,000 shares was applied towards the payment for allotment money. The balance of allotment money was also received in due time. Company didn't make first and final call.
You are to prepare the Journal, Cash Book, Ledger Accounts and show 'Share Capital' in the Balance Sheet of the company.
Alankrit Ltd. purchased machinery of ₹ 10,00,000 from Grand Iron Works Ltd. and paid as follows:
(a) Issued 50,000 Equity Shares of ₹ 10 each at a premium of ₹ 2.
(b) Gave an acceptance of ₹ 3,00,000 payable after 3 months; and
(c) Balance by issuing post-dated cheque of two months of ₹ 1,00,000.
Pass the Journal entries in the books of Alankrit Ltd. and Grand Iron Works Ltd.
XYZ Ltd . is registered with an authorised capital of ₹ 2,00,000 divided into 2,000 shares of ₹ 100 each of which , 1,000 shares were offered for public subscription at a premium of ₹ 5 per share , payable as:
| On application | --- | ₹ 10 per share, |
| On allotment | --- | ₹ 25 per share (including premium), |
| On first call | --- | ₹ 40 per share |
| On final call | --- | ₹ 30 per share |
Applications were received for 1,800 shares, of which applications for 300 shares were rejected outright; the rest of the application were allotted 1,000 shares on pro rata basis. Excess application money was transferred to allotment.
All the money was duly received except from Sundar , holder of 100 shares, who failed to pay allotment and first call money. His shares were later forfeited and reissued to Shyam at ₹ 60 per share ₹ 70 paid-up. Final call has not been made.
Pass necessary Journal entries and prepare Cash Book in the books of XYZ Limited.
Ruchi Ltd. issued for public subscription 40,000 Equity Shares of ₹ 10 each at a premium of ₹ 2 per share payable as:
| On application | --- | ₹ 2 per share; |
| On allotment | --- | ₹ 5 per share (including premium), |
| On first call | --- | ₹ 2 per share, |
| On second and final call | --- | ₹ 3 per share. |
Applications were received for 60,000 shares. Allotment was made on pro rata basis to the applicants for 48,000 shares, the remaining applications being refused. Money overpaid on application was utilised towards sums due on allotment. Ram to whom 1,600 shares were allotted failed to pay the allotment money and Shyam to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently forfeited after the second and final call was made. All the forfeited shares were reissued as fully paid-up @ ₹ 8 per share.
Give necessary Journal entries for the above transactions.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
The balance of depreciation account is transferred to ______
Give the performa of a Bill of Exchange
What should be deducted from subscribed share capital while preparing notes to account in the balance sheet.
Which of the following statement is false?
Which account is debited When shares are issued to the promoters?
Ambrish Ltd offered 2,00,000 Equity Shares of ₹10 each, of these 1,98,000 shares were subscribed. The amount was payable as ₹3 on application, ₹4 an allotment and balance on first call. If a shareholder holding 3,000 shares has defaulted on first call, what is the amount of money received on first call?
The 'minimum subscription' of capital cannot be less than up to how much % of the issued amount according to SEBI (Disclosure and Investor Protection) Guidelines, 2000.
When any shareholder fails to pay the amount due on allotment or on any of the calls, such amount is known as ______
Some shareholders pay a part or the whole of the amount of the calls not yet made. The amount so received from the shareholders is known as ______?
What is the rate of interest on calls in advance if an article of association of the company is silent?
When applications for more shares of a company are received than the number of shares offered to the public for a subscription it is called ______?
Where number of shares applied for Subscription is less thah the number for which applications have been invited for subscription this situation is called?
For which of the following purposes the amount of securities premium can be utilized?
Interest on calls-in-arrears is charged according to Table A at ______.
ESOP offered by company will create/retain ______.
Under which of the following headings/sub-headings, Calls-in-advance will be presented in the Balance Sheet of a Company as per Schedule III Part I of the Companies Act, 2013?
Y Ltd. invited applications for 10,000 shares of ₹10 each. Applications were received for 9,000 shares. Identify the kind of subscription.
Premium on issue of shares is a ______.
Premium on issue of shares is shown on which side of the Balance sheet?
When the number of debentures applied is less than number of debentures offered to public the issue is said to be ______.
'Non Recurring nature', 'Lump-sum' and 'once and for all' amount paid as membership fee, instead of paying regular periodic subscription is called ______.
The maximum capital beyond which a company is not allowed to raise funds, by the issue of shares is called ______.
