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Question
Mohit Glass Ltd. issued 20,000 shares of Rs 100 each at Rs 110 per share, payable Rs 30 on application, Rs 40 on allotment (including Premium), Rs 20 on first call and Rs 20 on final call. The applications were received for 24,000 shares and allotted 20,000 shares and reject 4,000 shares and amount returned thereon. The money was duly received. Give journal entries.
Solution
Books of Mohit Glass Ltd.
Journal
| Date | Particulars | L.F | Debit Amount Rs | Credit Amount Rs |
| 1. |
Bank A/c ...Dr. |
7,20,000
|
|
|
|
To Share Application A/c |
|
7,20,000 |
||
|
(Application money received on an application for 24,000 shares @ Rs 30 per share) |
|
|
||
| 2. |
Share Application A/c ...Dr. |
7,20,000 |
||
|
To Share Capital A/c (Bank Column) |
|
6,00,000 |
||
|
To Bank A/c |
|
1,20,000 |
||
|
(Share Application of 20,000 shares @ Rs 30 transferred to Share Capital Account and the balance returned) |
|
|
||
|
Share Allotment A/c ...Dr. |
8,00,000 |
|||
|
To Share Capital A/c |
6,00,000 |
|||
|
To Share Premium A/c |
2,00,000 |
|||
|
(Allotment money due on 20,000 shares @ 40 per share including Rs 10 for premium) |
|
|
||
|
Bank A/c ...Dr. |
8,00,000 |
|||
|
To Share Allotment A/c |
|
8,00,000 | ||
|
(Allotment money received on 20,000 shares @ Rs 40 per share) |
|
|||
|
Share First Call A/c ...Dr. |
4,00,000 |
|||
|
To Share Capital A/c |
|
4,00,000 | ||
|
(Share First Call money due on 20,000 shares @ Rs 20 per share) |
|
|||
|
Bank A/c ...Dr. |
4,00,000 |
|
||
|
To Share First Call A/c |
|
4,00,000 |
||
|
(Share First Call money received on 20,000 shares @ Rs 20 per share) |
|
|
||
|
Share Final Call A/c ...Dr. |
4,00,000 |
|||
|
To Share Capital A/c |
|
4,00,000 | ||
|
(Share Final Call money due on 20,000 shares @ Rs 20 per share) |
|
|||
|
Bank A/c ....Dr. |
4,00,000 |
|||
|
To Share Final Call A/c |
|
4,00,000 |
||
|
(Share Final Call money received on 20,000 shares @ Rs 20 per share) |
|
|
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Long Answer Question
State clearly the conditions under which a company can issue shares at a discount.
Kishna Ltd issued 15,000 shares of Rs 100 each at a premium of Rs 10 per share, payable as follows:
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On application |
Rs 30 |
|
On allotment |
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|
On first and final call |
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Raunak Cotton Ltd. issued a prospectus inviting applications for 6,000 equity shares of Rs 100 each at a premium of Rs 20 per shares, payable as follows:
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On application |
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|
On allotment |
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On first call |
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|
On final call |
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Give journal entries in the books of the company.
Prince Limited issued a prospectus inviting applications for 20,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share payable as follows:
|
With Application |
Rs. 2 |
|
On Allotment (including premium) |
Rs. 5 |
|
On First Call |
Rs. 3 |
|
On Second Call |
Rs. 3 |
Applications were received for 30,000 shares and allotment was made on pro-rata basis. Money overpaid on applications was adjusted to the amount due on allotment.
Mr. Mohit whom 400 shares were allotted, failed to pay the allotment money and the first call, and his shares were forfeited after the first call. Mr. Joly, whom 600 shares were allotted, failed to pay for the two calls and hence, his shares were forfeited. Of the shares forfeited, 800 shares were reissued to Supriya as fully paid for Rs. 9 per share, the whole of Mr. Mohit’s shares being included.
Record journal entries in the books of the Company and prepare the Balance Sheet.
Alfa Limited invited applications for 4,00,000 of its equity shares of Rs 10 each on the following terms :
|
Payable on application |
Rs 5 per share |
|
Payable on allotment |
Rs 3 per share |
|
Payable on first and final call |
Rs 2 per share |
Applications for 5,00,000 shares were received. It was decided :
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Journalise the following transactions in the books Bhushan Oil Ltd.:
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| On Application: | ₹ 3 |
| On Allotment: | ₹ 4 and |
| On Call: | Balance Amount. |
The issue was fully subscribed and allotment was made to all the applicants . Call was made during the year and was duly received.
Show share capital of the company in the Balance Sheet of the Company.
Hema Ltd. invited applications for 10,000 shares of ₹ 100 each payable as follows:
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You are required to Journalise these transactions.
Authorized share capital is also known as ______.
The owners of a company are called ______.
The amount on any call should not exceed Upto how much % of the face value of shares?
The owners of the shares are called ______
The difference between subscribed capital and called up capital is called ______.
Assertion (A): A share is a fractional part of the share capital and forms the basis of ownership interest in a company.
Reason (R): Shares refer to the units into which the total share capital of a company is divided.
| Nitya, Shreya and Ishita are partners in a firm. They share profits in the ratio of 5 : 3 : 2. Their fixed capitals are ₹ 1,80,000; ₹ 1,60,000 and ₹ 2,00,000 respectively. For the year ending 31st March, 2022, Nitya withdrew ₹ 7,500 at the end of every quarter. |
The partnership deed provided that interest on capital will be allowed @10% p.a. The amount of interest on Ishita's capital will be:
