Accountancy

Ghosh Ltd. made the second and final call on its 50,000 Equity Shares @ Rs. 2 per share on 1st January, 2016. The entire amount was received on 15th January, 2016 except on 100 shares allotted to Venkat. Pass necessary journal entries for the call money due and received by opening Calls-in-Arrears Account.

Solution

Continue ReadingGhosh Ltd. made the second and final call on its 50,000 Equity Shares @ Rs. 2 per share on 1st January, 2016. The entire amount was received on 15th January, 2016 except on 100 shares allotted to Venkat. Pass necessary journal entries for the call money due and received by opening Calls-in-Arrears Account.

Blue chip Ltd. was registered on 1st January 2011 with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company issued 42,000 shares of which 40,000 shares were taken up by the public and Rs. 1 per share was received with application. On 1st February, these shares were allotted and Rs. 2 per share was duly received on 28th February as allotment money. A first call of Rs. 3 per share was made on 1st March and the call money on all shares with the exception of 100 shares was received. The final call of Rs. 4 per share was made on 1st June and the amount due, with the exception of 400 shares, was received by 30th June. Pass necessary journal and Cash Book entries and prepare the Balance Sheet as at 30th June, 2011.

Solution

Continue ReadingBlue chip Ltd. was registered on 1st January 2011 with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company issued 42,000 shares of which 40,000 shares were taken up by the public and Rs. 1 per share was received with application. On 1st February, these shares were allotted and Rs. 2 per share was duly received on 28th February as allotment money. A first call of Rs. 3 per share was made on 1st March and the call money on all shares with the exception of 100 shares was received. The final call of Rs. 4 per share was made on 1st June and the amount due, with the exception of 400 shares, was received by 30th June. Pass necessary journal and Cash Book entries and prepare the Balance Sheet as at 30th June, 2011.

Sony Media Ltd. issued 50,000 shares of Rs. 10 each payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 1,00,000 shares and allotment was made as follows: (i) Applicants for 60,000 shares were allotted 30,000 shares, (ii) Applicants for 40,000 shares were allotted 20,000 shares, Anupam to whom 1,000 shares were allotted from category (i) failed to pay the allotment money. Pass journal entries up to allotment

Solution

Continue ReadingSony Media Ltd. issued 50,000 shares of Rs. 10 each payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 1,00,000 shares and allotment was made as follows: (i) Applicants for 60,000 shares were allotted 30,000 shares, (ii) Applicants for 40,000 shares were allotted 20,000 shares, Anupam to whom 1,000 shares were allotted from category (i) failed to pay the allotment money. Pass journal entries up to allotment

Sugandh Ltd. issued 60,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as Rs. 3 on application, Rs. 5(including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as:

(i)Applicants of 40,000 shares30,000 shares(ii)Applicants of 50,000 shares30,000 shares(iii)Applicants of 2,000 sharesNil Mohan, who had applied for 800 shares in Category(i) and Sohan, who was allotted 600 shares in Category(ii) failed…

Continue ReadingSugandh Ltd. issued 60,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable as Rs. 3 on application, Rs. 5(including premium) on allotment and the balance on first and final call. Applications were received for 92,000 shares. The Directors resolved to allot as:

Varun Ltd. issued Rs. 10,00,000 shares of Rs. 100 each at a premium of Rs. 20 for subscription payable as:

Rs. 10 per share on application,Rs. 40 per share and Rs. 10 premium on allotment, and Rs. 50 per share and Rs. 10 premium on final payment. Over-payments on application were to be applied towards amount…

Continue ReadingVarun Ltd. issued Rs. 10,00,000 shares of Rs. 100 each at a premium of Rs. 20 for subscription payable as:

Eastern Company Limited, having an authorised capital of Rs. 10,00,000 divided into shares of Rs. 10 each, issued 50,000 shares at a premium of Rs. 3 per share payable as follows:

On ApplicationRs. 3 per shareOn Allotment (including premium)Rs. 5 per shareOn first call (due three months after a allotment) and the balance as when required.Rs. 3 per share Applications were received for 60,000 shares…

Continue ReadingEastern Company Limited, having an authorised capital of Rs. 10,00,000 divided into shares of Rs. 10 each, issued 50,000 shares at a premium of Rs. 3 per share payable as follows:

Citizen Watches Ltd. invited applications for 50,000 shares of Rs. 10 each payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 60,000 shares. Applications were accepted for 50,000 shares and remaining applications were rejected. All calls were made and received except First and Final call on 500 shares. Pass the journal entries in the books of Citizen Watches Ltd.

Solution

Continue ReadingCitizen Watches Ltd. invited applications for 50,000 shares of Rs. 10 each payable Rs. 3 on application, Rs. 4 on allotment and balance on first and final call. Applications were received for 60,000 shares. Applications were accepted for 50,000 shares and remaining applications were rejected. All calls were made and received except First and Final call on 500 shares. Pass the journal entries in the books of Citizen Watches Ltd.

Sangam Ltd. invited applications for 10,000 Equity Shares of Rs. 100 each issued at par. The amount was payable on application. The issue was oversubscribed by 2,000 shares and allotment was made on pro-rata basis. Pass necessary Journal entries.

Solution

Continue ReadingSangam Ltd. invited applications for 10,000 Equity Shares of Rs. 100 each issued at par. The amount was payable on application. The issue was oversubscribed by 2,000 shares and allotment was made on pro-rata basis. Pass necessary Journal entries.

Super star Ltd. company invited applications for 75,000 equity shares of Rs. 100 each. The application money received @ Rs. 30 per share was Rs. 27,00,000. Name the kind of subscription. List the three  alternative for allotting these shares.

Solution

Continue ReadingSuper star Ltd. company invited applications for 75,000 equity shares of Rs. 100 each. The application money received @ Rs. 30 per share was Rs. 27,00,000. Name the kind of subscription. List the three  alternative for allotting these shares.