Doubts

Competent Ltd. issued a prospectus inviting applications for 50,000 Equity Shares of Rs. 10 each, payable Rs. 5 as per application (including Rs. 2 as premium), Rs. 4 as per allotment and the balance towards first and final call. Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment. Mr. Sharma to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money.  All the forfeited shares were subsequently sold to Mr. Jain credited as fully paid-up for Rs. 9 per share. You are required to set out the Journal entries and the relevant entries in the Cash Book.

Solution

Continue ReadingCompetent Ltd. issued a prospectus inviting applications for 50,000 Equity Shares of Rs. 10 each, payable Rs. 5 as per application (including Rs. 2 as premium), Rs. 4 as per allotment and the balance towards first and final call. Applications were received for 65,000 shares. Application money received on 5,000 shares was refunded with letter of regret and allotments were made on pro rata basis to the applicants of 60,000 shares. Money overpaid on applications including premium was adjusted on account of sums due on allotment. Mr. Sharma to whom 700 shares were allotted failed to pay the allotment money and his shares were forfeited by the Directors on his subsequently failure to pay the call money.  All the forfeited shares were subsequently sold to Mr. Jain credited as fully paid-up for Rs. 9 per share. You are required to set out the Journal entries and the relevant entries in the Cash Book.

Ruchi Ltd. issued for public subscription 40,000 Equity Shares of Rs. 10 each at a premium of Rs. 2 per share payable as:

     On application Rs. 2 per share      On allotment Rs. 5 per share (including premium)      On first call Rs. 2 per share      On second and  final call Rs. 3 per share Applications were received for 60,000 shares.…

Continue ReadingRuchi Ltd. issued for public subscription 40,000 Equity Shares of Rs. 10 each at a premium of Rs. 2 per share payable as:

A Ltd. invited applications for issuing 1,00,000 shares of Rs. 10 each at a premium of Rs. 1 per share. The amount was payable as follows:

On Application3 per shareOn Allotment3 per share (including premium)On First Call3 per shareOn Second and Final CallBalance amount Applications for 1,60,000 shares were received. Allotment was made on the following basis: …

Continue ReadingA Ltd. invited applications for issuing 1,00,000 shares of Rs. 10 each at a premium of Rs. 1 per share. The amount was payable as follows:

XYZ Ltd. is registered with an authorised capital of Rs. 2,00,000 divided into 2,000 shares of Rs. 100 each of which, 1,000 shares were offered for public subscription at a premium of Rs. 5 per share, payable as:  

    On application    Rs. 10 per share    On allotment   Rs. 25 per share     (Including premium)    On first call    Rs. 40 per share    On final call    Rs. 30 per share Applications were…

Continue ReadingXYZ Ltd. is registered with an authorised capital of Rs. 2,00,000 divided into 2,000 shares of Rs. 100 each of which, 1,000 shares were offered for public subscription at a premium of Rs. 5 per share, payable as:  

JK Ltd. invited applications for issuing 50,000 equity shares of Rs. 10 each at par. The amount was payable as follows:

       On Application Rs. 2 per share       On Allotment Rs. 4 per share      On First and Final call Balance Amount  The issue was oversubscribed three times. Applications for 30% shares were rejected and…

Continue ReadingJK Ltd. invited applications for issuing 50,000 equity shares of Rs. 10 each at par. The amount was payable as follows:

Jeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share. The amount was payable as follows:

      On application Rs. 2 per share      On allotment Rs. 5 per share (Including premium) On first and final call Balance  Applications for 1,50,000 shares were received. Shares were allotted to…

Continue ReadingJeevan Dhara Ltd. invited applications for issuing 1,20,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share. The amount was payable as follows:

Himalaya Company Limited issued for public subscription 1,20,000 equity shares of Rs. 10 each at a premium for Rs. 2 per share payable as under:

 With ApplicationRs. 3 per share On allotment (Including premium)Rs. 5 per share On First callRs. 2 per share  On Second and Final callRs. 2 per share Applications were received for 1,60,000 shares. Allotment was made on pro rata basis. Excess…

Continue ReadingHimalaya Company Limited issued for public subscription 1,20,000 equity shares of Rs. 10 each at a premium for Rs. 2 per share payable as under:

Alfa Ltd. invited applications for issuing 75,000 equity shares of Rs. 10 each. The amount was payable as follows:

 On application and allotment  Rs. 4 per share On first Call Rs. 3 per share On second and final Call Balance Applications for 1,00,000 shares were received. Shares were allotted to all the applicants on pro rata basis and…

Continue ReadingAlfa Ltd. invited applications for issuing 75,000 equity shares of Rs. 10 each. The amount was payable as follows:

Sukanya Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each. The shares were issued at a premium of Rs. 20 per share. The amount was payable as follows:

 On Application and Allotment Rs. 14 per share (including premium of Rs. 10) On First Call Rs. 8 per share (including premium of Rs. 5) On Final Call Rs. 8 per share (including premium of Rs. 5) Applications for 96,000 shares were…

Continue ReadingSukanya Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each. The shares were issued at a premium of Rs. 20 per share. The amount was payable as follows: