Micheal Vaz solutions for Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board chapter 10 - Company Accounts Part - 1 (Accounting for Shares) [Latest edition]

Answer in one Sentence only :
What is authorised capital?

Answer in one Sentence only :
State the meaning of issued capital.

Answer in one sentence only.

What do you mean by reserve capital?

Answer in one Sentence only :
Define share.

Answer in one Sentence only :
Write the meaning of equity share capital.

Answer in one Sentence only :
What is meant by convertible preference share?

Answer in one Sentence only :
Which preference shares are called cumulative preference shares?

Answer in one Sentence only :
What is meant by share premium?

Answer in one Sentence only :
What is meant by discount on issue of shares?

Answer in one Sentence only :
Give the full form of SEBI.

Answer in one Sentence only :
What do you understand by Pro-rata allotment of shares?

Answer in one Sentence only :
Define call-in-advance.

Answer in one Sentence only :
Define securities premium.

Give one word / Term / phrase for  the following statement :
Capital stated in the capital clause of Memorandum of Association.

Give one word / Term / phrase for  the following statement :
The portion of subscribed capital which has not yet been called up.

Give one word / Term / phrase for  the following statement :
The capital which is not disclosed in the balance sheet.

Give one word / Term / phrase for  the following statement :
Preference share on which arrears of dividend accumulate.

Give one word / Term / phrase for  the following statement :
A preference share having right of conversion into equity.

Give one word / Term / phrase for  the following statement :
Issue of share above face value.

Give one word / Term / phrase for  the following statement :
The account to which excess amount on share forfeited a/c is transferred.

Give one word / Term / phrase for  the following statement :
The maximum amount beyond which a company is not allowed to raise funds.

Give one word / Term / phrase for  the following statement :
Deduction made from share capital to find out paid up capital.

Give one word / Term / phrase for  the following statement :
Amount called on shares by the company but not received.

Give one word / Term / phrase for  the following statement :
The capital on which dividend is paid.

Give one word / Term / phrase for  the following statement :
Shares having voting right.

Give one word / Term / phrase for  the following statement :
Shares having first right on surplus assets at the time of liquidation.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
Nominal value of shares allotted to the public is called _____________ capital.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
Paid up, value of all shares allotted is called ______________ capital.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
As per section 69 (3) of the Companies Act, 1956, the minimum amount payable on share application should be______________ percent.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
As per SEBI guidelines, the minimum amount payable on share application should be ____________ of nominal value of share.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
As per Table A, the amount on call on a share must not exceed ____________ percent.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
If articles are silent regarding interest on calls-in-arrears, the minimum rate of interest to be charged is _____________.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
If the articles are silent regarding interest on Calls-in-advance, the minimum rate of interest to be charged is _____________ p.a.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
The document inviting offers from public to subscribe its share is called _____________.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
If shares are issued at its face value, it is called as issue at __________________.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
_____________ is deducted from the share capital to know paid up value of shares.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
Interest on Calls-in-arrears is ______________for the company.

Select the most appropriate answer from the alternatives given below and rewrite the sentence :
The excess price received over the par value of shares, should be ___________ to securities premium a/c.

State, whether the following statements is True or False.
The liability of a shareholder of public limited company is limited.

State, whether the following statements is True or False.
Equity shareholder enjoys preferential rights.

State, whether the following statements is True or False.
Equity share is a guarantee of fixed rate of dividend.

State, whether the following statements is True or False.
In private placement shares are issued to public through prospectus.

State, whether the following statements is True or False.
Private placement method saves time and cost.

State, whether the following statements is True or False.
In public issue whole amount of share capital is called at once.

State, whether the following statements is True or False.
Shares are always issued at par.

State, whether the following statements is True or False.
A public company can issue shares at only rate of discount.

State, whether the following statements is True or False.
A public company forfeits share on non-payment of final call only.

State, whether the following statements is True or False.
Forfeited shares are reissued at par only.

State, whether the following statements is True or False.
Share forfeited balance is transferred to Capital Reserve Account.

State, whether the following statements is True or False.
Shares are issued for cash only.

(Calculation of different types of Capital):
From the following details calculate authorised capital, issued, subscribed, called up and paid up share Capital and also calls in arrear and uncalled capital :
Pankaj Ltd. was formed with a capital of Rs 5,00,000 divided in to 5,000 shares of Rs 100 each. Of these 1,000 shares were issued to the vendor as fully paid in payment of purchase of machinery. 3,000 shares were offered to the public and of these 2,500 shares were applied and allotted. Rs 10 was payable on application and Rs 25 on allotment. The balance was yet to be called. All the money called up was duly received with the exception of allotment money on 300 shares

(Full Subscription)
The HMT Ltd. issued 15,000 Equity shares of Rs 10 each, payable as under-

All the shares were fully subscribed by the public. All the money due on installments were received.
Pass journal entries to record the above transactions in the books of the company.

(Under Subscription)
Usha Co. Ltd. issued Rs 12,000 Equity shares of Rs 100 each payable as under-

Public applied for Rs 10,000 shares and all the applicants were accepted by the company. Allotment of the shares were made. All the money on allotment, first call and second call were received.
Show the journal of the Company.

(Over Subscription and retain for allotment):
Geeta Ltd. invited applications for Rs 50,000 Equity shares of 10 each payable as under-

Public applied for Rs 60,000 shares. All the applications were accepted by the company. Money on excess application was used for allotment purpose. Assuming that all the allotment, first call and final call duly received.
Pass journal entries in the books of the company.
Rise in the books of the company.

(Over subscription- Some over application refunded and rest used for allotment)
ONGC Ltd. invited applications for 25,000 shares of Rs 100 each payable as under-

Public applied for 40,000 shares, out of which 10,000 shares were rejected and money on 5,000 shares was diverted to share allotment. All the allotment and calls money was received.
Pass journal entries in the journal of ONGC Ltd.

(Call in arrears and Balance Sheet)
The Alfo Ltd. made an issue of 10,000 shares of Rs 20 each payable as follows-

The company received applications for 15,000 shares of which applications for 5,000 shares were rejected and money refunded. The directors made all the calls. One share holders, holding 100 shares failed to pay first and final call. The expenses of issue amounted to Rs 5,000 . Pass journal entries and show the Balance Sheet.
Note: Expenses on issue should be shown as asset. Every year certain amount of expenses should be charged to P&L A/c.

(Issue at discount and Pro-rate allotment)
Global IT Ltd. issued 1,00,000 shares of 10 each at a discount of 10% payable as follows-

Public applied for 1,20,000 shares and the directors made pro-rata allotment to the applicants.
Show the journal of the company assuming that all money received on allotment and calls.

(Issue at premium and calls in arrears)
Hindusthan Petroleum Ltd., invited application for 40,000 Equity shares of Rs 100 each payable as under including 20% premium:

All the shares were applied for and also allotted. One share holder who was allotted 500 shares failed to pay first and final call.
Record the above transactions in the journal of the company.

(Forfeiture of shares issued at par)
Vijay Ltd. issued Rs 40,000 Equity shares of Rs 10 each payable as follows.

The company received applications for Rs 50,000 equity shares. Allotment for shares was made on pro rata basis. Share allotment and calls were made and as also received except Raja holding Rs 1,000 shares failed to pay both the calls. His shares were forfeited after second call.
Record the above transactions in books of Vijay Ltd.
Note: Excess money received on share application 10,000 × Rs 2 = 20,000 will be diverted to share allotment A/c.

(Forfeiture of shares issued at premium)
The Century Ltd. issued 8,000 shares of Rs 100 at a premium of 10% payable as under-

Company called up allotment and both the calls which were duly received except Ramesh to whom 500 shares were allotted failed to pay allotment and calls. Prepare Journal of Century Ltd.