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Vibhav
Subject: Accountancy
, asked on 9/9/17
Why is forfeited shares A/c shown under the Subscribed Capital part of the Balance Sheet???
Answer
1
Vibhav
Subject: Accountancy
, asked on 8/9/17
Shares issued for consideration other than cash are shown in the Balance Sheet under the head Issued Capital and Subscribed Capital Under Subscribed Capital they can be shown under Subscribed and full paid and Subscribed but not fully paid up Kindly give an example of each (when Subscribed and fully paid up and when Subscribed but not fully paid up
Answer
1
Riya Verma
Subject: Accountancy
, asked on 6/9/17
Forfeiture account is which type of account? What is its nature?
Answer
2
Riya Verma
Subject: Accountancy
, asked on 6/9/17
What is the difference between general reserve and capital reserve?
Answer
1
Riya Verma
Subject: Accountancy
, asked on 6/9/17
Can we give discount on reissue more than the forfeited amt ? If yes then how we will compensate the extra amount of discount apart from forfeiture a/c?
Answer
2
Nupur Solanki
Subject: Accountancy
, asked on 2/9/17
explain utilization of security premium reserve?
Answer
1
Nishtha Srivastava
Subject: Accountancy
, asked on 2/9/17
Question 66 with call in arrear account
Q66. Modern Ltd. issued a prospectus inviting applications for 2,00,000 shares of Rs.10 each at a premium of Rs.6 per share, payable as follows:
On Application Rs. 5 (including premium Rs.2)
On Allotment Rs. 5 (including premium Rs.2)
On 1st Call Rs. 3 (including premium Rs.1)
On IInd & Final Call Rs. 3 (including premium Rs.1)
Applications were received for 2,60,000 shares and pro-rata allotment was made to the applicants for 2,50,000 shares, Excess money paid on applications for these shares was utilised towards allotment.
A, who applied for 1,000 shares, failed to pay the allotment money and his shares were forfeited after allotment.
B, who applied for 1,500 shares, failed to pay the two calls and his shares were also forfeited.
Of the shares forfeited, 1,800 shares were re-issued as fully paid up for Rs.15 per share, the whole of B's share being included. Prepare Cash Book and Journal.
[Ans. Cash at Bank Rs.32,12,000; Cash received on allotment Rs. 7, 47,000; Balance of share Forfeiture A/c Rs. 850; Capital Reserve Rs. 9,750; Balance of Securities Premium Reserve A/c Rs. 12,03,400.]
Hint. Securities Premium Reserve A/c will be debited from Rs. 1,600 at the time of forfeiture of A's share and from Rs.2,400 at the time of forfeiture of B's shares.}
Answer
2
Nishtha Srivastava
Subject: Accountancy
, asked on 2/9/17
With call in arrear account
Answer
2
Nishtha Srivastava
Subject: Accountancy
, asked on 1/9/17
With opening call in arrear account please
Q65. SK Ltd. invited applications for issuing 3,20,000 equity shares of Rs.10 each ar a premium of Rs. 5 per share. The amount was payable as follows:
On application – Rs.3 per share (including premium Rs.1 per share)
On allotment -Rs.5 per share (including premium Rs.2per share)
On first and final call - Balance.
Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotments. Jeevan holding 800 shares failed to pay the allotment money and his shares were immediately forfeited. Afterwards final call was made. Ganesh who had applied for 2,700 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares 1, 500 shares were re-issued at Rs.8 per share fully paid up. The re-issued shares included all the forfeited shares of Jeevan.
Pass necessary Journal entries for the above transactions in the books of the company.
Answer
1
Riya Verma
Subject: Accountancy
, asked on 29/8/17
Please solve this question with the help of computation table and pass journal entries
Answer
3
Madhur Sangeet
Subject: Accountancy
, asked on 26/8/17
Can you please give it's solution along with it's explanation at every step ?
Answer
1
Tejasvita Goel
Subject: Accountancy
, asked on 24/8/17
plz solve this : i want to check my solution
Answer
1
Shubham
Subject: Accountancy
, asked on 24/8/17
Z Ltd. issued Equity shares of Rs. 100 each at a premium of Rs. 10 per share for the purchase of furniture of Rs. 99,000. Pass necessary journal entry for issue of shares.
Answer
3
Shubham
Subject: Accountancy
, asked on 21/8/17
X Limited issued a prospectus offering 2,00,000 shares of Rs.10 each at Rs.14 per share, payable as follows : On Application : Rs.4; On Allotment : Rs. 6 (including premium Rs.4); On First Call : Rs.3; On Final Call : Balance. Dinesh, the holder of 1,000 shares, did not pay the amount due on allotment and first call. His shares were forfeited and 400 of these shares were immediately re-issued credited Rs.9 paid for Rs.8.40 per share. Final Call was made afterwards and it was duly received. Show entries in the Cash Book and the Journal of the company. Please explain the amounts written in Cash Book.
Answer
1
Riya Verma
Subject: Accountancy
, asked on 19/8/17
Why vendor account is debited after purchase entry when shares are issued other than cash?
Answer
1
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Q66. Modern Ltd. issued a prospectus inviting applications for 2,00,000 shares of Rs.10 each at a premium of Rs.6 per share, payable as follows:
On Application Rs. 5 (including premium Rs.2)
On Allotment Rs. 5 (including premium Rs.2)
On 1st Call Rs. 3 (including premium Rs.1)
On IInd & Final Call Rs. 3 (including premium Rs.1)
Applications were received for 2,60,000 shares and pro-rata allotment was made to the applicants for 2,50,000 shares, Excess money paid on applications for these shares was utilised towards allotment.
A, who applied for 1,000 shares, failed to pay the allotment money and his shares were forfeited after allotment.
B, who applied for 1,500 shares, failed to pay the two calls and his shares were also forfeited.
Of the shares forfeited, 1,800 shares were re-issued as fully paid up for Rs.15 per share, the whole of B's share being included. Prepare Cash Book and Journal.
[Ans. Cash at Bank Rs.32,12,000; Cash received on allotment Rs. 7, 47,000; Balance of share Forfeiture A/c Rs. 850; Capital Reserve Rs. 9,750; Balance of Securities Premium Reserve A/c Rs. 12,03,400.]
Hint. Securities Premium Reserve A/c will be debited from Rs. 1,600 at the time of forfeiture of A's share and from Rs.2,400 at the time of forfeiture of B's shares.}
Q65. SK Ltd. invited applications for issuing 3,20,000 equity shares of Rs.10 each ar a premium of Rs. 5 per share. The amount was payable as follows:
On application – Rs.3 per share (including premium Rs.1 per share)
On allotment -Rs.5 per share (including premium Rs.2per share)
On first and final call - Balance.
Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotments. Jeevan holding 800 shares failed to pay the allotment money and his shares were immediately forfeited. Afterwards final call was made. Ganesh who had applied for 2,700 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares 1, 500 shares were re-issued at Rs.8 per share fully paid up. The re-issued shares included all the forfeited shares of Jeevan.
Pass necessary Journal entries for the above transactions in the books of the company.