Ashok Ltd. invited application for 15,000 shares of Rs.100/- each. The share amount was payable as under : –
Rs.20/- on Application
Rs.30/- on Allotment
Rs.20/- on First Call &
Rs.30/- on Final Call
Applications were received for 10,000 shares. All moneys were called and duly received. Pass necessary journal entries and prepare ledger account and Balance Sheet.
Q. 2 A Company issued Rs.5,00,000/- new capital divided into Rs.10/- shares at a premium of Rs.4/- per share payable as On Application Re.1/- per share On Allotment Rs.4/- per share & Rs.2/- premium On Final Payment Rs.5/- per share & Rs.2/- premium Overpayments on application were to be applied towards sum due on allotment. Where no allotment was made money was to be returned in full. The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 were sent letters of regret. All money due on allotment and final call was duly received. Make the necessary entries in the company’s book.
Q. 3 P & Co. Ltd. issued 5,000 shares of Rs.100/- each. The share amount was payable as follows –
On Application – Rs.30/On Allotment – Rs.30/On First Call – Rs.20/On Final Call – Rs.20/The public applied for 5,500 shares. Applications for 100 shares were immediately rejected. In respect of applicant for 5,400 shares, directors decided that 5,000 shares would be allotted on pro-rata basis and the application money received on 400 shares would be used towards payment of allotment money. You are asked to prepare Cash Book and Ledger accounts assuming that all calls were made and received.
Q. 4 Modi Ltd. issued 4,500 Equity shares of Rs.200/- each payable Rs.20/- per share on application, Rs.80/- per share on allotment, Rs.50/- per share on first call & the balance as & when required. The application list was closed on that date, the analysis of the application showed as under – From Maharashtra 3,500 shares From U.P. 2,000 shares From M.P. 500 shares The directors allotted all the Maharashtra applications & half of the UP applications. All the applications from MP were absolutely rejected and the application money was refunded. But excess application money on UP was not refunded and was appropriated towards the allotment money due on the shares allotted to them. The balance of allotment money was duly received. Show the journal entries in the books of the company.
Q. 5 Wampire Ltd. invited application for 15,000 of it‟s equity shares of Rs.10/- each at a premium of Rs.5/- per share, payable Rs.3/- on application, Rs.6/- on allotment (including premium) Rs.3/- on 1st call & Rs.3/- on final call. Application was received for 22,000 shares & it was decided to deal with the same as follows in arrangement with the stock exchange authorities.
a) To refuse allotment to applicants for 2,000 shares.
b) To give full allotment to applicants for 5,000 shares.
c) To allot the remaining shares pro-rata among other applicants. d) To utilize the surplus received on application in part payment of amount due on allotment. Ramesh holder of 200 shares (to whom full allotment was made) & Rajesh, holder of 400 shares (to whom pro-rata allotment was made) failed to pay the allotment money. Jayesh holder of 100 shares failed to pay the first & final call.
All these shares were Forfeited & re-issued 300 shares (Full allotment of Ramesh & 100 of Rajesh) at Rs.8/- per share. Show the entries in the books of the company.
Q. 6 Amit Ltd. invited applications for 10,000 shares of Rs.100/- each at a discount of 6% payable as follows –
On Application Rs. 25/On Allotment Rs. 34/On First & Final Call Rs. 35/The applications were received for 9,900 shares & all of these were accepted by the Directors. All money due were received except the first and final call on 10 shares which were Forfeited out of these 5 shares were issued at Rs.90/- as fully paid. Assuming that all the requirements of the law were...
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