1.
What is the meaning of minimum
subscription?
2.
What is authorized capital?
3.
What is sweat equity shares?
4.
What is private placement of shares?
5.
How is share capital shown in companies’ Balance sheet?
6.
Distinguish between reserve capital and capital reserve.
7
. State any three conditions on which shares can be issued at discount.
8.
State the purpose for which share
premium can be utilized?
9. Rohit Ltd.
purchased
asset from Rohan &co. worth Rs 400000 at 10%trade discount .A sum of
Rs 90000 was paid by means of the draft and for the balance
due to Rohit Ltd.
Issued equity share of Rs 10 each at a
discount of 10%.Journlise the above
transaction
in the book of the company.
10. R Ltd. foreited 200 equity shares of Rs.10
each issued at a premium of Rs. 5 per
share payable along with allotment, for
the non-payment of allotment money of Rs.8
per share (including premium).Application
was Rs.2 per share .The forfeited shares
were reissued for Rs.2,000 as fully paid.
Pass necessary journal entries.
11.
X Ltd. invited applications for the issue of Rs 1000000 equity share of Rs10
each
payable as follows
On application and allotment Rs 3 per share
On first call Rs 4 per share
On
second and final call Rs 3 per
share
Applications for 1500000 shares were
received and pro -rata allotment was made to the applications. Excess
application money was adjusted on the sums due on first call. When the first
call was made, one shareholder who had applied for 15000 shares did not pay the first call money. Pass necessary
journal entries in the books of the company.
12.Moneywell
company issued for public subscription
50000 equity shares of the value of
Rs.10 each at the discount of 10% payable as follows.Rs.2
on application, Rs.3 on allotment , Rs. 2 on first call, Rs . 2 on final
call.The company received application for 1,25,000 shares . The allotment was done as follows.
a. Applicants
of 15,000 shares were refunded the application money.
b. Applicants
of 60,000 shares were allotted 30,000 shares
c. Remaining
applicants were allotted 20,000 shares
The exess application money to be adjusted
allotment and call if any.
Mohan , A share holder who had applied for 3000 shares
(Group B) failed to pay the allotment money and both calls.Remesh a holder(Group
C) who was allotted 1500 paid the calls money along with allotment money.
Pass journal entry to
record the above.
14 Jounalise
the following transaction in the books of Poonam ltd
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 the shares at Rs.20 per share was not need.
The forfeited shares were re-issued for Rs. 7000 fully paid.
15 50 shares of Rs. 10 each issued at a premium
of Rs.5 each.p ayable with allotment were forfeited for the nonpayment of allotment money of Rs.9
per shares including the premium. The first and final call on these shares
at Rs 3 per share were not made. The forfeited share were reissue d at
Rs.12 per share fully paid up.
16. 1000 shares
of Rs. 10 each issue the par were forfeited for the non payment of the final
call of Rs.2 per shares. These shares were re-issued at the rate of Rs.8 per
share fully paid up?
17 Distinguish between Equity share and
Preference share?
18 . Seema 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.5 per share
(including premium)
On Allotment Rs.4 per share
On 1st and final call –the
balance
Applications
for 2, 60,000 shares were received. Applications for 20,000 shares were
rejected. To the remaining applicants, shares were allotted on pro-rata basis
.Excess money received on application was adjusted with sums due on allotments.
All calls were made and were duly received except the first and final call of
Mr.Sudhir who applied for 2,400 shares. His shares were forfeited. The forfeited
shares were re-issued for Rs.28, 800 fully paid-up.Pass necessary journal
entries for the above transactions in the books of the company
19 What is meant
by convertible debentures?
20`Why would an investor prefer to invest in
debentures of a company rather than
in its shares?
21 What is meant
by secured debenture
22 Ltd. for the
above mentioned A
company issued Rs.10000,13%
debentures at a discount
of 5 % redeemable after 5 years
at a premium of 10%.Pass
journal entries for the
issue
of debentures.
23. Shruti Ltd.bought
the business of Shinkey Ltd.
on 1-4-2007 consisting of Sundry
Assets
of Rs.560000 and creditors
Rs.100000 for a purchase consideration
of
Rs.500000.Rs.100000 was paid in cash
on 3-4-2007 and for the balance 6% Debentures
were
issued at a
premium of 25% on 5-4-2007. Pass necessary journal entries in the
books of Shrutitransactions.
24 . Gopalan Ltd. purchased 5000
of its own 8% Debentures of Rs.1000 each at Rs.987 per
Debenture.It
also purchased another lot of 600 debentures
of the same series at Rs.986
per
debenture. The debentures were purchased
for the purpose of cancellation . Record
necessary journal entries in the books of the
company.
25 SaheshLtd.
issued 10000,9%Debentures of
Rs.100 each at
par and also raised a
loanof Rs.200000 from bank, collaterally
secured by Rs.250000,9%Debentures.How
will
you show the Debentures in
BalanceSheet of the Company assuming
that the
company has recorded
the issue of Debentures as collateral in the books?
