Accounting for Companies (CBSE Class-12 Accountancy): Questions 7 - 10 of 21

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Question number: 7

» Accounting for Companies » Accounting for Share Capital » Share and Share Capital

Short Answer Question▾

Write in Short

Can a company issue share of discount? What conditions must a company comply with before the issue of such shares.

Question number: 8

» Accounting for Companies » Accounting for Debentures » Redemption of Debentures

Short Answer Question▾

Write in Short

ABC Ltd. redeemed 2000, 8 % debentures of Rs. 100 each which were issued at a discount of 5 % by converting them into equity shares Rs. 10 each issued at a premium of 25 % Journalise.

Question number: 9

» Accounting for Companies » Accounting for Share Capital » Accounting for Share Capital

Essay Question▾

Describe in Detail

Pass necessary journal entries in the books of Varun Ltd. for the following transactions:

i) Issued 58, 000, 9 % debentures of Rs. l, 000each at a premium of 10%.

ii) Converted 350, 9 % debentures of Rs. 100 each into equity shares of Rs. 10 each issued at premium of 25%.

iii) Redeemed 450, 9 % debentures of Rs. 100 each by draw of lots.

Explanation

journal entries in the books of varun ltd.

entries are made for various transaction related to share capital

No.

particulars

L. F.

DR. RS.

Cr. RS.

(I)

Issued 58, 000, 9 % debentures of Rs. l, 000 each at a premium of 10%.

1

Bank A/c ……Dr.

6, 38, 00,… (178 more words) …

Question number: 10

» Accounting for Companies » Accounting for Share Capital » Accounting for Share Capital

Short Answer Question▾

Write in Short

Z Ltd. invited applications for issuing 200000 equity shares of Rs. 25 each at a premium of Rs. 10 per share. The amount was payable as follows:

Applications per 250000 shares were received. Application for 25000 shares were rejected and shares were allotted on pro rata basis to the remaining applicants. All calls were made and were duly received except the first and final call on 2000 shares allotted to Vijay. His shares were forfeited. The forfeited shares were reissued@Rs. 30 per share fully paid up. Pass the necessary Journal entries in the books of the company.

On application and allotment Rs. 10 per share Balance including premium on first and final call.

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