Accountancy

Venus Ltd. issued 40,000; 10% Debentures of Rs. 100 each at par for cash payable in full along with the application. Applications were received for 60,000 debentures. Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company.

Solution

Continue ReadingVenus Ltd. issued 40,000; 10% Debentures of Rs. 100 each at par for cash payable in full along with the application. Applications were received for 60,000 debentures. Debentures were allotted and excess application money was refunded. Pass Journal entries in the books of the company.

Mohit Ltd. issued 2,000; 9% Debentures of Rs. 100 each on the following terms: Rs.20 on applications; Rs. 20 on allotment; Rs. 30 on first call; Rs. 30 on final call. The public applied for 2,400 debentures. Applications for 1,800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures and applications for 200 debentures were rejected. Pass necessary Journal entries.

Solution

Continue ReadingMohit Ltd. issued 2,000; 9% Debentures of Rs. 100 each on the following terms: Rs.20 on applications; Rs. 20 on allotment; Rs. 30 on first call; Rs. 30 on final call. The public applied for 2,400 debentures. Applications for 1,800 debentures were accepted in full. Applications for 400 debentures were allotted 200 debentures and applications for 200 debentures were rejected. Pass necessary Journal entries.

Anand Ltd. issued 2,000; 9% Debentures of Rs. 100 each payable as follows: Rs. 25 on application; Rs. 25 on allotment and Rs. 50 on first and final call. Applications were received for all the debentures along with the application money did allotment was made. Call money was also received on the due date. Pass necessary Journal entries in the books of the company.

Solution

Continue ReadingAnand Ltd. issued 2,000; 9% Debentures of Rs. 100 each payable as follows: Rs. 25 on application; Rs. 25 on allotment and Rs. 50 on first and final call. Applications were received for all the debentures along with the application money did allotment was made. Call money was also received on the due date. Pass necessary Journal entries in the books of the company.

XYZ Ltd. issued a prospectus inviting applications for 2,000 shares of Rs. 10 each at a premium of Rs. 4 per share, payable as:                

On application Rs. 6 (including Rs. 1 premium)On allotment    Rs. 2 (including Rs. 1 premium)On first callRs. 3 (including Rs. 1 premium)On second and final callRs. 3 (including Rs. 1 premium) Applications were received for 3,000 shares and pro rata allotment was made on the…

Continue ReadingXYZ Ltd. issued a prospectus inviting applications for 2,000 shares of Rs. 10 each at a premium of Rs. 4 per share, payable as:                

Max Ltd. invited applications for 2,00,000 Equity Shares of Rs. 10 each to be issued at 20% premium. The money payable per shares was: on application Rs. 5, on allotment Rs. 4 (including premium of Rs. 2), first call Rs. 2 and final call Rs. 1, Applications were received for 2,40,000 shares and allotment was made as: (i) to applicants for 1,00,000 shares— in full, (ii) to applicants for 80,000 shares—60,000 shares, (iii) to applicants for 60,000 shares—40,000 shares. Applicants of 1,000 shares falling in Category (i) and applicants of 1,200 shares falling in Category (ii) failed to pay allotment money. These shares were forfeited on failure to pay first call. Holders of 1,200 shares falling in Category (iii) failed to pay the first and final call and these shares were forfeited after final call. 1,300 shares [1,000 of Category(i) and 300 of Category (ii)] were reissued at Rs. 8 per share as fully paid-up. Journalise the above transactions. Prepare Cash book and Balance Sheet.

Solution

Continue ReadingMax Ltd. invited applications for 2,00,000 Equity Shares of Rs. 10 each to be issued at 20% premium. The money payable per shares was: on application Rs. 5, on allotment Rs. 4 (including premium of Rs. 2), first call Rs. 2 and final call Rs. 1, Applications were received for 2,40,000 shares and allotment was made as: (i) to applicants for 1,00,000 shares— in full, (ii) to applicants for 80,000 shares—60,000 shares, (iii) to applicants for 60,000 shares—40,000 shares. Applicants of 1,000 shares falling in Category (i) and applicants of 1,200 shares falling in Category (ii) failed to pay allotment money. These shares were forfeited on failure to pay first call. Holders of 1,200 shares falling in Category (iii) failed to pay the first and final call and these shares were forfeited after final call. 1,300 shares [1,000 of Category(i) and 300 of Category (ii)] were reissued at Rs. 8 per share as fully paid-up. Journalise the above transactions. Prepare Cash book and Balance Sheet.

Bharat Ltd. invited applications for issuing 2,00,000 Equity Shares of Rs. 10 each. The amount was payable as: On application Rs. 3 per share, on allotment Rs. 5 per share and on first and final call Rs. 2 per share. Applications for 3,00,000 shares were received and pro rata allotment was made to all the applicants on the following basis: Applicants for 2,00,000 shares were allotted 1,50,000 shares on pro rata basis. Applicants for 1,00,000 shares were allotted 50,000 shares on pro rata basis. Bajaj, who was allotted 3,000 shares out of group applying for 2,00,000 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Sharma, who had applied for 2,000 shares out of the group applying for 1,00,000 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares 3,500 shares were reissued as fully paid-up @ Rs. 8 per share. The reissued shares included all the forfeited shares of Bajaj. Give necessary journal entries to record the above transactions.

Solution

Continue ReadingBharat Ltd. invited applications for issuing 2,00,000 Equity Shares of Rs. 10 each. The amount was payable as: On application Rs. 3 per share, on allotment Rs. 5 per share and on first and final call Rs. 2 per share. Applications for 3,00,000 shares were received and pro rata allotment was made to all the applicants on the following basis: Applicants for 2,00,000 shares were allotted 1,50,000 shares on pro rata basis. Applicants for 1,00,000 shares were allotted 50,000 shares on pro rata basis. Bajaj, who was allotted 3,000 shares out of group applying for 2,00,000 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. Sharma, who had applied for 2,000 shares out of the group applying for 1,00,000 shares failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares 3,500 shares were reissued as fully paid-up @ Rs. 8 per share. The reissued shares included all the forfeited shares of Bajaj. Give necessary journal entries to record the above transactions.

Raja Ltd. invited applications for issuing 50,000 Equity Shares of Rs. 10 each. The amount was payable as follows:           

On application  Rs. 3 per share On allotment Rs. 3 per share On first and final call Balance Applications for 70,000 shares were received. Allotment was made to all applicants on pro rata basis. Excess money received…

Continue ReadingRaja Ltd. invited applications for issuing 50,000 Equity Shares of Rs. 10 each. The amount was payable as follows:           

Nitro Paints Ltd. invited applications for issuing 1,60,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The amount was payable as follows:

       On application Rs. 6 per share (including premium Rs.1)       On allotment Rs. 3 per share (including premium Rs. 1)       The balanceOn First and Final call  Applications for 1,80,000 shares were…

Continue ReadingNitro Paints Ltd. invited applications for issuing 1,60,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The amount was payable as follows: