1)State any two ways in
which the amount of Securities Premium can be utilised.
2)Mention any two
features of a Joint Stock Company.
3)A Ltd. issued
10,000 shares of Rs 100 each payable as Rs 20 on application, Rs 40 on
allotment and the balance on first and final call. Company received excess
applications to the extent of 4,000 shares. Allotments were made on pro- rata
basis to the applicants of 12,000 shares. Rests of the applications were
rejected outright and their application money was returned. Money overpaid on
application from the applicants of allotted shares was adjusted on allotment.
Mr. Prem, a shareholder, applied for 168 shares failed to pay the first and
final call. Calculate the amount of Calls-in-Arrears on first and final call.
4)Prepare Cash Book
and pass Journal entries in the each of the following cases. (2 + 2)
(a) B Ltd. issued 2,000 equity shares
of Rs 100 each payable Rs 25 on application, Rs 45 on allotment and the balance
on first and final call. Public applied for all the offered shares and these
shares were duly allotted. All money was received on due time.
(b) K.K. Construction Ltd. invited
application for 1,000 shares of Rs 10 each payable Rs 4 on application, Rs 4 on
allotment and the balance on first and final call. Public applied 2.5 times of
the offer. 400 of the applied shares were rejected outright and their money was
returned and the remaining applicants were allotted shares on pro-rata basis.
The money overpaid on application from the applicants of allotted shares was
adjusted on the subsequent calls.
5)(a) Baba Wool
Garments Ltd. forfeited 300 shares of Rs 10 each, on which Rs 8 was called for
the non-payment of first call of Rs 3. Of the forfeited shares, 200 shares were
reissued at Rs 7 per share Rs 8 paid-up, 60 shares at Rs 9 per share Rs 8
paid-up and remaining were reissued at Rs 10 per share fully paid-up.
(b) Modern Food Products Ltd.
forfeited 400 shares of Rs 10 each issued at premium of Rs 2 per share for the
non-payment of allotment Rs 5 (including premium) and first and final call of
Rs 2 per share. Out of the forfeited shares, 200 shares were reissued at Rs 9
per share, 100 shares at Rs 10 per share, 80 shares at Rs 12 per share and the
rest 20 shares remained unsold.
Pass the necessary Journal entries
for forfeiture and reissue of shares for each of the above cases. (3+3)
6)Swastik Medicines Ltd. undertook a gage to provide the poor and
destitute children with free medicines on World Health Day on April 07, 2012. For this purpose, it issued 20,000 shares of Rs 10 each at a
premium of Rs 2 per share payable as Rs 3 on application (including Re. 1
premium), allotment Rs 4 (including Re. 1 premium), Rs 2 on first call and Rs 3
on final call.
Applications were received for 30,000
shares of which 2,000 shares were allotted in full (Category-I), 1,000 were rejected and remaining
shares were allotted on pro-rata basis (Category-II). Application money
of rejected shares were returned outright and money overpaid on application
from the applicants of allotted shares was adjusted on allotment.
Two shareholders failed to pay the
allotment and calls money; one holding 200 shares belonging to the Category-I
and another holder holding 360 shares belonging to the Category-II.
These shares were subsequently
forfeited and reissued, except 100 shares of Category-I, at Rs 9 per share
fully paid-up. Pass the Journal entries for issue, forfeiture, reissue and
capital reserve. Also, prepare the Company's Balance Sheet as per the Revised Schedule VI of the
Companies Act.
Identify the values
involved in the decision of the company to undertake the free medical campaign.
7)Sinha Ltd. issued 40,000 shares of Rs 100 each
at a discount of 10% payable as Rs 30 on application, Rs 35 on allotment and
balance on first and final call. The issue was oversubscribed by 25,000 shares.
Company made the allotment on the following basis:
Category- I: To the applicants for 25,000 shares- Full
Category- II: To the applicants for 15,000 shares-
Rejected
Category- III: To the applicants for 25,000 shares- 15,000
shares
Excess money on application (if any) was to be utilised towards
allotment.
Mini, who applied for 1,500 shares (from Category-III), failed to pay the allotment and call money.
Shruti, a shareholder of 500 shares (from Category-III) failed to pay the call money. These shares
were forfeited by the company. Out of these forfeited shares, 1,200 shares (all
the shares of Mini included) were reissued to Ram at Rs 70 fully paid-up. Pass
the necessary Journal entries for the above transactions in the books of Sinha
Ltd. Also, prepare the company’s Balance Sheet of Sinha Ltd. as per the Revised Schedule VI
of the Companies Act.
Also, identify the
values involved in making pro-rata allotment to the applicants of Category-III.
8)What is Sweat
Equity Shares?
9)Is it possible for
a newly Incorporated Public Limited Company that is formed on April 01, 2010 to
issue shares at a discount on January 05, 2010?
10Chaudhary and Sons
Limited issued 1,00,000 shares of Rs 10 each to the general public payable as
Rs 2 on application, Rs 4 on allotment and remaining on the first and final
call. In adherence to the SEBI's guidelines, the company reserved 50% of the
net offer (i.e. 50,000) for the small investors. All the shares were fully
subscribed. Identify the values involved in the question.
11)A Ltd. issued
10,000 shares of Rs 50 each, payable as Rs 10, on application, Rs 30 on
allotment and Rs 10 on call. Applications were received for 25,000 shares and
allotment was made on pro-rata basis. Allotment money was received for shares
except, Ram to whom 100 shares were allotted. Calculate the amount received on
allotment?
12)Amit, who holds
10,000 shares of Rs 10 each, paid the amount of First and Final Call of Rs 2 in
advance on May 18, 2009. The First and Final Call will be due on September 27,
2009. Interest is due and paid on the date of call. Company paid interest on Calls
in Advance as per the Table A. Pass the necessary Journal entries, assuming
that the company closes its accounts every year on March 31.
13)(a) Cool wind Ltd.
a refrigeration company purchased equipment of Rs 8,00,000 from Air Ltd. Debt
arising on account of the purchase of the equipment was settled by paying 25%
through bank draft and the remaining by issuing equity shares of Rs 10 each at
50% premium. Pass necessary Journal entries.
(b) Prabhat Ltd. acquired business of
Raat Ltd. for Rs 3,80,000. Business purchased consisted: Machinery Rs 2,00,000,
Sundry Debtors Rs 2,50,000 and Sundry Creditors Rs 1,00,000. The purchase
consideration was paid by issuing 10% Preference Shares of Rs 100 each at 5%
discount. Pass necessary Journal entries. (2+2) marks
14)Glory Ltd., has an
authorised capital of Rs 50,00,000 divided into 5,00,000 equity share of Rs 10
each, out of which 3,00,000 shares were issued to the general public
payable as Rs 2 on application Rs 4 on allotment, Rs 2 on first call and Rs 2
on final call. Public applied for 2,90,000 shares, all the applied shares were
duly allotted. A shareholder who was allotted 2,000 shares paid the amount of
final call money along with the first call. Final call has not been yet made. Prepare the Balance Sheet of Glory
Ltd. as per the Revised Schedule VI of the Companies Act.
15)MW Ltd. issued 50,000 equity shares of Rs 10
each at a 10% premium and 6,000 12% Preference Shares of Rs 100 each at a
discount of 10%.
Amount payable is as follows:
|
|
Equity
Shares
|
12%
Preference Shares
|
|
On
Application
|
3
|
30
|
|
On
Allotment
|
4
|
30
|
|
On First
Call
|
2
|
20
|
|
On Final
Call
|
2
|
10
|
All the issued shares were subscribed and the amount due on the
both the calls were received on the due course. Prepare the Cash Book and pass
the necessary Journal entries to record the transactions.
16)Lucks Ltd. issued 10,000 shares of Rs 50 each
at a premium of Rs 10 payable as Rs 20 on application, Rs 25 on allotment
(including premium), Rs 7.5 on first call and the balance on final call.
Applications were received for 18,000 shares. The company made the allotment on
the following basis:
Category- A: To the applicants for 6,000 shares- Full
Category- B: To the applicants for 5,000 shares- Rejected
Category- C: To the applicants for 3,000 shares- 2,000
shares
The excess money on application (if any) was utilised towards allotment.
Amit, a shareholder of 300 shares, (belonging to Category C)
failed to pay the allotment and call money and his shares are forfeited
immediately after first call. Saurabh, another shareholder to whom 200 shares
were allotted failed to pay both the calls. His shares were forfeited after
making the final call.
Out of the forfeited shares, 400 shares were reissued (which
included all the shares of Amit) by the company at Rs 40 as fully paid-up.
Record the above transactions by passing necessary Journal entries and also prepare Company’s
Balance Sheet as per theRevised Schedule VI.
Identify the value that the company violated by rejecting the
applications of Category-B.
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