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Accountancy
QUESTION FOR PRACTICE  
ACCOUNTANCY
CLASS-XII

COMPANY ACCOUNTS : (ISSUE OF SHARES)

Q.1. A2Z Ltd. Purchased assets from Mohan & co. for Rs.350000. A sum of Rs.75000 was paid by means of a bank draft and for the balance due A2Z Ltd issued equity shares of Rs. 10 each at a premium of 10%. Journalize the above transactions in the books of the company.

Q.2. A company purchased another company’s business for Rs.270000. An amount of Rs.100000 was paid in cash and Rs.150000 equity shares issued at premium in full settlement. Make journal entries in the purchased company’s book.


Q.3. KPL limited invited applications for 80000 shares of Rs.10 each payable as follows:
Rs. 2.50 on application on 1st may,2005, Rs.2.50 on allotment on 1st June, 2005 , Rs.2 on Ist call on 1st Nov., 2005 and Rs. 3 on second call on 1st Feb., 2006.

All the shares were applied and allotted. Riyaz, holding 600 shares paid the whole of the amount along with allotment. Interest on advance amount was paid to Riyaz on 1st Feb., 2006. 

Prepare cash book and journal entries assuming that books are closed on 31st march every year.

Q.4. Golu ltd issued prospectus inviting applications for 20000 shares of Rs. 10 each at a premium of Rs.3 per share, payable as to Rs.4 on application, Rs. 5 on allotment (including premium), Rs.2 on 1st call and Rs. 2 on final call.

Applications were received for 27000 shares; directors allotted the shares as follows:
To applicants of 16000 shares .......... full allotment
To applicants of 6000 shares .......... 4000 shares
To applicants of 5000 shares .......... Nil

Give journal entries and cash book assuming that all sums due on allotment and calls have been received.

Q.5. A holds 200 shares of Rs.100 each, has paid only rs.25 per share as application money.
B holds 300 shares of 100 each, as paid Rs.25 per share on application and Rs.30 per share on allotment.
C, holds 400 shares of Rs.100 each, has paid Rs.25 per share on application, Rs.30 per share on allotment and Rs.20 per share on first call. 

The failed to pay their arrears and final call. Their shares were forfeited and re-issued at Rs.95 per share. Give journal entries.

Q.6. Give journal entries.
(a) A2Z ltd forfeited 400 shares of Rs.100 each, issued at a premium of Rs.5 per share (to be paid at the time of allotment) for non payment of a first call of Rs. 20 per share. The second and final call of Rs.20 has not yet been called. Out of these, 100 shares were re issued on fully paid up for Rs.110 per share.

(b) 100 shares of Rs.100 each issued at a discount of 10% were forfeited for the non payment of allotment money of RS.50 per share. The first and final call on these shares at Rs.20 per share was not made. The forfeited shares were re-issued for Rs.7000 fully paid up.

(c) KPL ltd forfeited 500 shares of Rs.10 each, Rs.8 called up on which Mohan has paid application and allotment money of Rs.6 per share. Of these, 400 shares were re-issued to Rohan as fully paid for Rs.9 per share.

(d) IPL ltd forfeited 1000 shares of Rs.10 each issued at 30% premium to Golu (Rs.8 cal led up) on which she did not paid Rs. 5 on allotment (including premium) and first call of Rs.3. Out of these, 400 shares were-issued to Sonu as Rs.8 called up for Rs.6 per share and 300 shares to Monu as fully paid up for Rs.11 per share at different intervals of time.

Q.7. Sanjay ltd issued a prospectus inviting applications for 60000 shares of Rs.10 each at a premium of 30% payable as follows: on application Rs.3.50; on allotment Rs.5.50 (including premium); on 1st call Rs.2 and on 2nd and final call Rs.2.

Applications were received for 95000 shares and allotment was made pro-rata to applicants of 80000 shares. Money over paid on applications was employed on account of sums due on allotment.

X, to whom 1500 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call his shares were forfeited. Y, holder of 2400 shares failed to pay the two calls and his shares were forfeited after the second call. Of the shares forfeited, 3000 shares were sold to Z as fully paid, Z paying Rs.8.50 per share, the whole of Y’s share being included.

Q.8. 500 shares of Rs.10 each, issued at a premium of Re 1 on which Rs.8 (including premium) was called and Rs.6 (including premium) was paid, have been forfeited. 400 of these shares were reissued as fully paid for Rs.7. Journalize.

Q.9. A ltd forfeited 400 shares of Mr. X who had applied for 600 shares on account of non-payment of allotment, first call and final call. Shares were issued at Rs.2 premium payable as follows:

On application Rs.3, on allotment Rs.3+2. On 1st call Rs. 2 and final call Rs.2. Out of these, 300 shares were re issued to Mr. Y at the rte of Rs.12 per share as fully paid shares. Give journal entries in the books of company to record above transactions.

Q.10. Answer the following questions:-
(a) A ltd acquired assets worth rs.750000 from H ltd by issue of shares of rs.100 at a premium of 25%. Find out the number of shares to be issued by G ltd to settle the purchase consideration?

(b) B ltd had allotted 10000 shares to the applicants of 14000 shares on pro-rata basis. The amount payable on application is rs.2. F applied for 420 shares. Find out the number of shares allotted and the amount carried forward for adjustment against allotment money due from F?

(c) C ltd forfeited 500 equity shares of rs.10 each fully called up which were issued at a premium of 20%. Amount payable on shares were on application rs.2; on allotment rs.5 (including premium) on first and final call rs.5. Only application money was paid by the shareholders in respect of these shares. Pass journal entries for the forfeiture.

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