Lotus Ltd. invited applications for issuing 80,000 equity shares of ₹10 each at a premium of ₹4 per share. The amount was payable as follows: On application ₹5 per share and On allotment ₹9 per share (included premium). Applications were received for 1,40,000 shares and allotment was made to all...

Tulip Ltd. invited applications for issuing 2,40,000 equity shares of ₹10 each at a premium of ₹4 per share. The amount was payable as under: On application ₹4 per share (including premium ₹2) On allotment ₹4 per share On first and final call ₹6 per share (including premium ₹2) Applications...

Sunstar Ltd. has an authorised capital of ₹20,00,000 divided into equity shares of ₹10 each. The company invited applications for issuing 60,000 shares. Applications were received for 58,000 shares. All calls were made and were duly received except the final call of ₹3 per share on 2,000 shares. These shares...

Yash Ltd. invited applications for 50,000 equity shares of ₹10 each at a premium of 10%. The amount was payable as follows: On application ₹3 per share; on allotment (including premium) ₹3 per share and on first and final call, the balance amount. Applications were received for 1,20,000 shares and...

Ajanta Ltd. issued a prospectus inviting applications for issuing 5,00,000 equity shares of ₹10 each issued at a premium of 10%. The amount was payable as follows: On application ₹3 per share On allotment (including premium) ₹5 per share On first and final call ₹3 per share Applications were received...

Narmada Ltd. has an authorized capital of 10,00,000 divided into equity shares of ₹10 each. The company issued a prospectus inviting applications for issuing 80,000 equity shares. The company received applications for 75,000 equity shares. All calls were made and were duly received except the first and final call of...

Vani Limited invited applications for issuing 1,00,000 equity shares of ₹10 each at a premium of 10%. The amounts were payable as under: On Application and Allotment ₹4 per share (including premium ₹1) On first call ₹4 per share On second and final call ₹3 per share Applications for 1,50,000...

Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following cases: (i) Vipin Ltd. forfeited 10,000 shares of ₹10 each issued at a premium of ₹1 per share, for non-payment of second and final call of ₹2 per share. Out of these, 60% of the shares...

MM Ltd. is registered with an authorised share capital of ₹10,00,00,000 was divided into 1,00,00,000 equity shares of ₹10 each. The company invited applications for issuing 10,00,000 equity shares. The amount per share was payable as follows: On Application – ₹3 per share On Allotment – ₹4 per share On...

CCL Ltd. invited applications for issuing 75,000 equity shares of ₹10 each at a premium of ₹3 per share. The amount was payable as follows: On Application – ₹2 per share On Allotment – ₹6 per share (including premium) On First Call – ₹3 per share On Second and Final...

Pass necessary journal entries for the forfeiture and reissue of shares in the following cases CC Ltd. forfeited 10,000 shares of ₹10 each, ₹8 called up, for non-payment of allotment money of ₹3 per share and first call of ₹3 per share. Out of these, 2000 shares were reissued for...

Atishyokti Ltd. company was registered with an authorized capital of ₹20,00,000 divided into 2,00,000 Equity Shares of ₹10 each, payable ₹3 on application, ₹6 on allotment (including ₹1 premium) and balance on call. The company offered 80,000 shares for public subscription. All the money has been duly called and received...

From the following information complete Journal entries. Share Forfeiture A/c Marks-4, CBSE:2020-21/Sample/Q-16 Answer : Back

A company forfeited 4,000 shares of ₹10 each fully called-up, on which application money of ₹3 each has been paid. Out of these, 2,000 shares were reissued as fully paid up for ₹18,000. Pass necessary journal entries for above transactions. Marks-3, CBSE:2022-23/Zone-3/Set-1/Q-18* Answer : Back

Disha Ltd. forfeited 500 shares of ₹100 each issued at 10% premium, ₹90 called up, on which the shareholders did not pay ₹30 per share on allotment (including premium) and first call of ₹20 per share. Out of these, 300 shares were reissued for ₹80 per share, fully paid up....

Lilly Ltd. forfeited 100 shares of ₹10 each issued at10% premium (₹8 called up) on which a shareholder did not pay ₹3 of allotment (including premium) and first call of ₹2. Out of these 60 shares were reissued to Ram as fully paid for ₹8 per share and 20 shares...

The Directors of Rockstar Ltd. invited applications for 2,00,000 Shares of ₹10 each, issued at 20% premium. Share was payable as ₹5 on application, ₹4 (including premium) on allotment and balance on call. Public had applied for 3,20,000 shares out of which applications for 20,000 shares were rejected and remaining...

Shaktimaan Ltd. invited applications for issuing 1,00,000 Shares of ₹10 each at a premium of ₹2 per share. The amount was payable as ₹4 on application (including premium); ₹5 on Allotment and balance on call. Applications were received shares for 1,80,000 of which Applications for 30,000 shares were rejected and...

Random Ltd. took over running business of Mature Ltd. comprising of Assets of ₹45,00,000 and Liabilities of ₹6,40,000 for a purchase consideration of ₹36,00,000. The amount was settled by bank draft of ₹1,50,000 and balance by issuing 12% preference shares of ₹100 each at 15% premium. Pass entries in the...

Altaur Ltd. was registered with an authorised Capital of ₹4,00,00,000 divided in 25,00,000 Equity Shares of ₹10 each and 1,50,000, 9% Preference Shares of ₹100 each. The company issued 8,00,000 Equity Shares for public subscription at 20% premium, payable ₹3 on application; ₹7 on allotment (including premium) and balance on...

OTUA Ltd. was registered with an authorised capital of 2,00,000 equity shares of ₹100 each. The company offered 60,000 shares for public subscription at 25% premium. The share was payable as ₹40 on application and balance on allotment with premium. Public had applied for 85,000 shares. Pro-rata allotment was made...

Saraswati Ltd. has an authorised capital of ₹10,00,000 divided into equity shares of ₹10 each. Subscribed and fully paid up share capital of the company was ₹4,00,000, To meet its new financial requirements, the company issued 20,000 equity shares of ₹10 each which were payable as follows: ₹3 on application;...

Saraswati Ltd. has an authorised capital of ₹10,00,000 divided into equity shares of ₹10 each. Subscribed and fully paid up share capital of the company was ₹4,00,000, To meet its new financial requirements, the company issued 20,000 equity shares of ₹10 each which were payable as follows: ₹3 on application;...

Ganga Lid. invited applications for issuing 10,000 equity shares of ₹10 each. The amount per share was payable as follows: ₹2 on application, ₹3 on allotment, ₹3 on first call and ₹2 on second and final call. Applications were received for 15,000 shares, the applications for 3,000 shares were rejected...

Mukund Ltd, invited applications for issuing 50,000 equity shares of ₹10 each at 10% premium. The amount per share was payable as follows: ₹3 on application, ₹3 (including premium) on allotment and balance amount on first and final call. Applications were received for 1,20,000 shares and shares were allotted on...

Annex Ltd. issued 1,00,000 shares of ₹10 each at a premium of 10% to the public for subscription. The whole amount was payable on application. Applications were received for 3,00,000 shares and the board decided to allot shares to all shareholders on pro-rata basis. Pass necessary journal entries for the...

Sandesh Ltd. has an authorised capital of ₹30,00,000 divided into equity shares of ₹10 each. The company invited applications for issuing 70,000 shares. Applications for 69,000 shares were received. All calls were made and duly received except the first and final call of ₹2 per share on 3,000 shares. These...

Pass necessary journal entries for the forfeiture and reissue of shares in the following cases: (i) BCG Limited forfeited 75 shares of ₹10 each issued at a premium of ₹4 per share for non-payment of allotment money of ₹8 per share (including premium). The first and final call of ₹4...

Pushkar Limited invited applications for 30,000 shares of ₹100 each at 20% premium. The amount per share was payable as under: On application ₹40 (including ₹10 premium) On allotment ₹30 (including ₹10 premium) On first call ₹30 On second and final call Balance Applications were received for 40,000 shares and...

Surya Ltd with a Registered capital of 10,00,000 Equity Shares of 10 each, issued 1,00,000 Equity Shares payable 3 on Application, 2 on Allotment, 3 on First Call and 2 on Second and Final call. The amount due on Allotment was duly received except from Mr. X holding 6,000 shares....

Willow Ltd. was registered with an authorized capital of Rs.  10,00,000 divided into 1,00,000 equity shares of Rs.  10 each. The company offered 80,000 shares for subscription to the public, out of which 75,000 shares were subscribed. All amounts were received except the final call of Rs.  2 per share...

Janta Ltd. had an authorized capital of 2,00,000 equity shares of Rs.   10 each. The company offered to the public for subscription 1,00,000 shares. Applications were received for 97,000 shares. The amount was payable as follows on application was Rs.   2 per share, Rs.   4 was payable each on allotment...

NK Ltd., a truck manufacturing company, is registered with an authorised capital of Rs.  1,00,00,000 divided into equity shares of Rs.  100 each. The subscribed and paid-up capital of the company is Rs.  50,00,000. The company decided to open technical schools in the Jhalawar district of Rajasthan to train the...

Xansa Ltd. offered 22,000 equity shares of Rs.  100 each to the public at a premium of Rs.  20 per share. The amount per share was payable as Rs.  30 on application; Rs.  50 (including premium) on allotment; and the balance on first and final call. 20,000 shares were subscribed...

Kansa Ltd. offered 32,000 equity shares of Rs.  100 each to the public at a premium of Rs.  20 per share. The amount was payable as: Rs.  20 on application; Rs.  40 (including premium) on allotment; and the balance on first and final call. 30,000 shares were subscribed by the...

Akash Ltd. is registered with an authorized Capital of Rs.  8,00,00,000 divided into equity shares of Rs.  10 each. Subscribed and fully paid up share capital of the company was Rs.  4,00,00,000. For providing employment to the local youth and for the development of the rural areas of the Jammu...

Raunit Styles Ltd. was registered with a capital of Rs.  85,00,000 divided into equity shares of Rs.  100 each. The company invited applications for issuing 45,000 shares. The amount was payable as Rs.  25 on application, Rs.  35 on allotment, Rs.  25 on first call and balance on final call....

Bliss Products Ltd. registered with capital of ₹ 90,00,000 divided into 90,000 equity shares of ₹ 100 each. The company issued prospectus inviting applications for 50,000 equity shares of ₹ 100 each payable as ₹ 20 on application, ₹ 30 on allotment, ₹ 20 on first call and balance on...

ABC Ltd was a cloth manufacturing company located in Delhi. Being a socially aware organization they wanted to set up a manufacturing plant in a backward area of Kashmir to provide employment to the local people. On July 17, 2014 a flood had hit the entire state of Jammu &...

Navnirman Ltd. issued 4,00,000 equity shares of Rs.   10 each at par. The amount per share was payable as follows: Rs.   3 on application; Rs.   2 on allotment; Rs.   2 on first call and Rs.   3 on final call. The issue was fully subscribed and the shares were allotted fully...

Madhur Ltd. took over the assets of Rs.  3,90,000 and Liabilities of Rs.  40,000 of Rasova Ltd. for a consideration of Rs.  4,00,000. 20% was paid by a cheque and the balance by issue of fully paid equity shares of Rs.  100 each at a premium of 60%. Show necessary...

Sico Ltd. took over the assets of Rs.  4,80,000 and liabilities of Rs.  80,000 of Mittal Ltd. for a consideration of Rs.  3,20,000. Rs.  20,000 were paid by an acceptance in favour of Mittal Ltd. payable after 3 months and the balance by issue of fully paid up 8% Preference...

King Ltd took over assets of Rs. 25,00,000 and liabilities of Rs. 6,00,000 of Queen Ltd. King Ltd paid the purchase consideration by issuing 10,000 equity shares of Rs. 100 each at a premium of 10% and Rs. 11,00,000 by a Bank Draft. Calculate Purchase consideration and pass necessary Journal...

Denspar Ltd. invited applications for issuing 2,00,000 equity shares of Rs.  10 each at a premium of Rs.  20 per share. The amount was payable as follows: On Application – Rs.  2 per share On Allotment – Rs.  13 per share (including Rs.  10 premium) On First Call – Rs. ...

Prayuj Ltd. forfeited 2,000 shares of Rs.  10 each, fully called up, on which they had received only Rs.  14,000. 50 of the forfeited shares were reissued for Rs.  9 per share fully paid up. Pass necessary journal entries for forfeiture and re-issue of shares. Also prepare share forfeited account....

Cemto Ltd. forfeited 6,000 shares of Rs.  10 each issued at a premium of Rs.  2 per share for the non-payment of final call of Rs.  3 per share. 300 of the forfeited shares were reissued for Rs.  8 per share as fully paid up. Pass necessary journal entries for...

(i) R.P. Ltd. forfeited 1,500 shares of Rahim of Rs. 10 each issued at a premium of Rs. 3 per share for non-payment of allotment and first call money. Rahim had applied for 3,000 shares. On these shares, amount was payable as follows: On application – Rs. 3 per share...

X Ltd. forfeited 10 shares of ₹ 10 each, ₹ 7 called up on which the shareholder had paid application and allotment money of ₹ 5 per share. Out of these, 8 shares were re-issued to Y for ₹8 per share at ₹ 8 per paid up per share. Record...

(a) AX Limited forfeited 6,000 shares of Rs. 10 each for non-payment of First call of Rs. 2 per share. The Final call of Rs. 3 per share was yet to be made. The Final call was made after Forfeited of these shares. Of the forfeited shares, 4,000 shares were...

AXN Ltd. invited applications for issuing 1,00,000 equity shares of Rs.  10 each at a premium of Rs.  6 per share. The amount was payable as follows: On Application Rs.  4 per share (including Rs.  2 premium). On Allotment Rs.  5 per share (including Rs.  2 premium). On First Call...

Nidhi Ltd. Issued 2,000 Shares of 100 each. All the money was received except on 200 shares on which only Rs. 90 per share were received. These shares were forfeited and out of the forfeited shares 100 shares were reissued at Rs. 80 each as fully paid up. Pass necessary...

Karur Ltd. invited applications for issuing 2,40,000 equity shares of Rs. 10 each at a premium of Rs. 4 per share. The amount was payable as under: On application – Rs. 4 per share (including premium Rs. 2) On allotment – Rs. 4 per share On first and final call...

V.D. Ltd. invited applications for issuing 2,00,000 equity shares of Rs. 10 each at a premium of Rs. 6 per share. The amount per share was payable as follows: On application – Rs. 3 (including premium Rs. 1) On allotment – Rs. 7 (including premium Rs. 5) On first and...

Eiko Ltd. invited applications for issuing 2,00,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The amount was payable as follows: On Application – Rs. 4 per share On Allotment – Rs. 6 per share (including premium Rs. 3) On First and Final Call...

K.N. Ltd. invited applications for issuing 6,00,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The amount was payable as follows: On Application and Allotment Rs. 3 per share. On First Call Rs. 4 per share. On Second and Final Call Balance (including premium)....

Premier Tools Ltd. invited applications for issuing 2,00,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share. The amount was payable as follows : On application – Rs. 5 per share (including premium) On allotment – Rs. 3 per share On first & final call...

Concept Stationary Ltd. invited applications for issuing 3,00,000 shares of Rs. 10 each at a premium of Rs. 3 per share. The amounts were payable as follows : On application and allotment – Rs. 7 per share. On first & final call – balance (including premium of Rs. 3) Applications...

EF Ltd. invited applications for issuing 80,000 equity shares of Rs.  50 each at a premium of 20%. The amount was payable as follows : On Application : Rs.  20 per share (including premium Rs.  5) On Allotment: Rs.  15 per share (including premium Rs.  5) On First Call :...

Megha Ltd. invited applications for issuing 90,000 equity shares of Rs. 100 each at a premium of Rs. 60 per share. The amount was payable as follows: On Application – Rs. 30 per share (including premium Rs. 10) On Allotment – Rs. 70 per share (including premium Rs. 50) On...

S Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each. The shares were issued at a premium of Rs. 5 per share. The amount was payable as follows : On Application and Allotment – Rs. 8 per share (including premium Rs. 3) On the First and Final...

Royal Ltd. invited applications for issuing 2,00,000 equity shares of Rs. 10 each at a premium of 25% payable with application. Applications for 4,50,000 shares were received. Applications for 1,00,000 shares were rejected and money refunded. Pro-rata allotment was made to the remaining applicants. The amount per share was payable...

Anshika Ltd. issued applications for 2,00,000 equity shares of ₹10 each, at a premium of ₹4 per share. The amount was payable as follows: On application ₹ 6 (including ₹2 premium) On allotment ₹ 7 (including ₹2 premium) Balance on first and final call Applications for 3,00,000 shares were received....

Manvet Ltd. invited applications for issuing 10,00,000 equity shares of Rs.   10 each payable as follows : On application and allotment Rs.   4 per share (including premium Rs.   1) On first call Rs.   4 per share, On second and final call Rs.   3 per share....

X Ltd. invited applications for issuing 5,00,000 equity shares of Rs. 10 each at par. The amount per share was payable as follows: On Application Rs. 1 per share On Allotment Rs. 2 per share On First call Rs. 3 per share On Second and Final call – Balance. Applications...

X Ltd. invited applications for issuing 50,000 equity shares of Rs. 10 each. The amount was payable as follows: On Application : Rs. 2 per share On Allotment : Rs. 2 per share On First Call : Rs. 3 per share On Second and Final Call : Balance amount Applications...

Midee Ltd. invited applications for issuing 27,000 shares of Rs. 100 each payable as follows : Rs. 50 – per share on application Rs. 10 – per share on allotment Balance – on first and final call. Applications were received for 40,000 shares. Full allotment was made to the applicants...

Benolac Paints Ltd. invited application 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. 3 per share (including premium Rs. 1) On allotment – Rs. 3 per share. On first and final...

Bayson Ltd. invited applications for issuing 54,000 shares of Rs. 100 each payable as follows : Rs. 50 per share on application Rs. 10 per share on allotment Balance on first and final call. Applications were received for 80,000 shares. Full allotment was made to the applicants of 14,000 shares....

Konark Ltd. invited applications for issuing 3,00,000 shares of Rs. 10 each. The amount per share was payable as follows: Rs. 3 on application, Rs. 3 on allotment, and Rs. 4 on first and final call. The company received applications for 4,00,000 shares. Allotment was done as follows: (i) Applicants...

Rathi Ltd. invited applications for issuing 1,00,000 shares of Rs. 10 each at a premium of Rs. 2 per share. Amount per share was payable as follows : On Application – Rs. 4 (including premium Rs. 1) On Allotment – Rs. 4 (including premium Rs. 1) On First and Final...

Zee Ltd. invited applications for issuing 3,40,000 equity shares of Rs. 10 each at a premium of Rs. 5 per share. The amount was payable as follows: On application Rs. 4 per share (including Rs. 2 premium) On allotment Rs. 5 per share (including Rs. 2 premium) On First and...

Saregama Ltd invited applications for issuing 80,000 equity shares of ₹ 100 each at a premium of ₹ 10. The amount was payable as follows On Application – ₹ 30 On allotment – ₹ 30 (including a premium of ₹ 10) On 1st call – ₹ 30 On Final Call...

Rathee Ltd. invited applications for issuing 1,00,000 equity shares of Rs.10 each. The shares were issued at a premium of 60%. The amount was payable as follows: On Application and Allotment – Rs. 6 per share (including premium Rs. 4) On First and Final Call – Balance including premium Applications...

‘Venus Ltd’ was registered with an authorised capital of Rs.  40,00,000 divided into 4,00,000 equity shares of 10 each. 70,000 of these shares were issued as fully paid to ‘M/s. Star Ltd.’ for building purchased from them. 2,00,000 shares were issued to the public and the amounts were payable as...

‘Venus Ltd’ was registered with an authorised capital of Rs.  40,00,000 divided into 4,00,000 equity shares of 10 each. 70,000 of these shares were issued as fully paid to ‘M/s. Star Ltd.’ for building purchased from them. 2,00,000 shares were issued to the public and the amounts were payable as...

Sunstar Ltd. invited applications for issuing 2,00,000 equity shares of Rs.  50 each. The amount was payable as follows: On Application – Rs. 15 per share On Allotment – Rs. 10 per share On First and Final Call – Rs. 25 per share Applications for 3,00,000 shares were received. Allotment...

Khyati Ltd. issued a prospectus inviting applications for 80,000 equity shares of ₹10 each payable as follows: ₹2 on application ₹3 on allotment ₹2 on first call ₹3 on final call Applications were received for 1,20,000 equity shares. It was decided to adjust the excess amount received on account of...

XL Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each at par. The amount was payable as follows: On Application Rs. 3 per share. On Allotment Rs. 4 per share. On First and Final Call Rs. 3 per share. The issue was over-subscribed by three times. Applications...

Alpha India Ltd. was registered with an authorised capital of ₹10,00,000 divided into 1,00,000 equity shares of ₹10 each. The company offered to the public for subscription 80,000 equity shares payable per share as: ₹3 on application, ₹2 on allotment, ₹3 on first call and the balance on second and...

A Ltd. invited applications for issuing 80,000 equity shares of ₹10 each at a premium of ₹4 per share. The amount was payable as follows: On application – ₹5 per share On allotment – ₹9 per share (premium included) Applications were received for 1,40,000 shares and allotment was made to...

AB Ltd. issued 30,000 shares of ₹10 each at par, payable as follows: ₹3 per share – on application ₹3 per share – on allotment Balance – on first and final call Applications were received for 50,000 shares. Applications for 10,000 shares were rejected and allotment was made on pro-rata...

Zocon Ltd. issued a prospectus inviting applications for 5,00,000 equity shares of ₹10 each issued at a premium of 10% payable as: ₹3 on Application ₹5 on Allotment (including premium) and ₹3 on call. Applications were received for 6,60,000 shares. Allotment was made as follows: (a) Applicants of 4,00,000 shares...

X Ltd. has offered 50,000 equity shares of ₹100 each at a premium of ₹20, payable as follows: Application ₹50 Allotment ₹40 (including premium) and balance on first and final call. The bank account of the company has received ₹35,00,000 on account of share application money. X Ltd. decided to...

On 1st April, 2019, Chetan Ltd. was formed with an authorised capital of ₹22,50,000 divided into 22,500 equity shares of ₹100 each.  The company invited applications for 18,750 equity shares. The amount was payable as follows: On application ₹ 30 per share On allotment ₹ 40 per share On first...

Anurag Ltd. invited applications for issuing 1,00,000 equity shares of ₹10 each at a premium of 10%. The amount was payable as follows: On application – ₹3 per share On allotment – ₹3 per share (including premium) On first call – ₹2 per share On second and final call –...

Pass journal entries for the following transactions: AXN Ltd. forfeited 2,400 shares of ₹10 each for non-payment of final call of ₹3 per share. Out of the forfeited shares, 800 shares were reissued at 8 per share as fully paid-up. Vanya Ltd. purchased a running business from Hardik Ltd. for...

Pawan Ltd. was registered with an authorised capital of ₹10,00,000 divided into 1,00,000 equity shares of ₹10 each. The company offered to the public for subscription, 80,000 equity shares. The amount per share was payable as follows: On application ₹3, On allotment ₹2 On first call ₹3 and On second...