Accounting for Companies-Accounting for Share Capital (CBSE Class-12 Accountancy): Questions 1 - 3 of 13

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Question number: 1

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

Essay Question▾

Describe in Detail

Janata Ltd. invited application for issuing 70, 000 equity shares of Rs. 10 each at a premium of Rs. 2 per share. The amount was payable as follows:

On application Rs. 4 per share (including premium)

On allotment Rs. 3 per share

On first and final Balance

Applications for 1, 00, 000 shares were received. Applications for 10, 000 shares were rejected. Shares were allotted to the remaining applicants on pro-rata basis. Excess money received with applications were adjusted towards sums due on allotment. All calls were made and were duly received except first and final call on 700 shares allotted to Kanwar. His shares were forfeited.

The forfeited shares were re-issued for Rs. 77, 000 fully paid up.

Pass necessary journal entries for the books of the company for the above transactions.

Explanation

JOURNAL ENTRY IN THE BOOKS OF JANTA LTD.

entry related to issue of share, allotment and calls of it

No.

Particulars

L. F.

DR. Rs.

Cr. Rs

1

Bank A/c ……Dr.

4, 00, 000

To Share Application A/c

(Being application money received on 1, 00, 000 shares@Rs. 4 per… (242 more words) …

Question number: 2

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

One Liner Question▾

Write in Brief

Give the meaning of ‘minimum subscription’.

Question number: 3

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

Essay Question▾

Describe in Detail

Shubham Ltd. invited applications for the allotment of 80, 000 equity shares of Rs. 10 each at a discount of 10%. The amount was payable as follows:

On application Rs. 2 per share

On allotment Rs. 3 per share

On first and final call- Balance

Applications for 1, 10, 000 shares were received. Applications for 10, 000 shares were rejected. Shares were allotted on pro-rata basis to the remaining applicants. Excess application money received on application was adjusted towards sums due on allotment. All calls were made and were duly received. Manoj who had applied for 2, 000 shares failed to pay the allotment and first and final call. His shares were forfeited. The forfeited shares were re-issued for Rs. 24, 000 fully paid up. Pass necessary journal entries in the books of the company for the above transaction.

Explanation

JOURNAL ENTRY IN THE BOOKS Shubham Ltd.

entry related to issue of share, allotment and calls of it

No.

Particulars

L. F.

DR. RS

CR. RS.

1

Bank A/c……. Dr.

2, 20, 000

To Share Application A/c

(Being application money received on 1, 10, 000 share@Rs. 2 per share)… (251 more words) …

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