Applications for 70,000 shares were received. Applications for 10,000 shares were rejected and the application money was refunded.
Shares were allotted to the remaining applicants on a pro-rata basis and excess money received with applications was transferred towards sums due on allotment and calls, if any.
Gopal, who applied for 600 shares, paid his entire share money with application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were re-issued to Sultan for Rs 20,000; Rs 4 per share paid up. The first call money and the second and final call money was called and duly received.
Pass necessary journal entries for the above transactions in the books of X Ltd. Open Calls-in-Advance Account and Calls-in-Arrears Account wherever necessary.
What is the nature(Real/Personal?Nominal) Please justify why:
share capita A/C
Share allot ac
share forfeiture ac
capital reserve ac
securities premium account
Can anyone explain how to calculate capital reserve amount when all forfeited shares are not reissued?
I want solutions of T.S.Grewal's double entry book keeping solutions for class 12th..plys help me ,,
What is the new format of the balance sheet(company) prfrd by cbse.
(Pro-rata Allotment of Shares Issued at Premium, Non-Payment of Allotment and Calls, Forfeiture and Reissue).
A limited company issued a prospectus inviting applications for 2,000 shares of Rs.10 each at a premium of Rs.2 per share payable as follows:
On application Rs.2 per share
On allotment Rs.5 per share (including premium)
On 1st call Rs.3 per share
On 2nd call Rs2 per share
Application were received for 3,000 shares and allotment made pro-rata to the applicants of 2,400 shares, the remaining applications being refused. Money over-paid on application was employed on account of sums due on allotment. Rajesh, to whom 40 shares were allotted failed to pay allotment money and on his subsequent failure to the 1st call, his shares were forfeited. Madan, the holder of 60 shares, failed to pay the two calls and so his shares were also forfeited.
All these shares were sold to Kadam credited as fully paid for Rs.9 per share.
Show the Journal and Cash Book entries in the books of the company.
please also show the working notes.
Where are ts grewal solution
On Application Rs.2 per share
On Allotment Rs.5 per share (including Premium)
On First Call Rs.2 per share
On Final Call Rs.3 per share
Applications were received for 70,000 shares. Allotment was made in pro-rata to the applicants for 50,000 shares, the remaining applications being refused. Money overpaid on applications was applied towards sum due on allotment. A to whom 1500 shares were alloted , failed to pay the allotment and call money. B, who applied for 2500 shares failed to pay the two calls. The shares of A and B were subsequently forfeited after the second call was made. 3000 of the forfeited shares were reissued @ Rs.8 per share fully paid. The reissued shares included all of A's shares.
Pass journal entries in the books of the company to record the above transactions
X ltd. has an authorised capital of rs. 10,00,000 divided into equity shares of rs. 10 each. The company invited applications for 50,000 shares. Applications for 45,000 shares were received. All calls were duly received except the final call of rs. 2 per share on 1,000 shares. 500 of the shares on which the final call was not received were forfeited. Show how share capital will appear in the company balance sheet of the company as per schedule vi, Part i of the companies act,1956.
What is the difference between over subscription and under subscription of shares?
while making payment to vendor through shares if shares comes in decimal then how we will balance the journal entry or what the entry should be passed
what is the difference between bank rate and repo rate?
bharat tires limited invited applications for 100000 equity shares of rs 10 each issued at a premium of rs 4 per share. the amount was payble as follows: on application rs 6 (including premium rs 2) on allotmentrs 6 (including premium rs 2), applications for 150000 shares were recieved. allotment was made to all the applications on pro-rata basis. subodh, to whom 200 shares were alloted, failed to pay allotment and call money. vikram , to whom 100 shares were alloted, failed to pay the call money. their shares were forfeited and after wards re-issued @ rs 10 per share fully paid up.
pass neccessary journal entries with working notes
what are sweat equity shares
shiva Ltd. invited application for issuing 2,00,000 Equity shares of Rs.100 each ta 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 first & final call and balance amont
Application for 1,90,000 shares were received . Shares were alloted to all the applicants & the company received all money due on alloment except Jain who had been alloted 1,000 shares, and his shares were immediately forfeited . Afterwards first &final call was made. Gupta did not pay the first & final call on his 2,000 alloted shares. His shares were also forfeited . 50% of the forfeited shares of both Jain & Gupta were re-issued for Rs.90 per share fully paid up.
Pass the journal entries in the books of Shiva Ltd. for the above transactions.
Applications for 70,000 shares were received. Applications for 10,000 shares were rejected and the application money was refunded.
Shares were allotted to the remaining applicants on a pro-rata basis and excess money received with applications was transferred towards sums due on allotment and calls, if any.
Gopal, who applied for 600 shares, paid his entire share money with application. Ghosh, who had applied for 6,000 shares, failed to pay the allotment money and his shares were immediately forfeited. These forfeited shares were re-issued to Sultan for Rs 20,000; Rs 4 per share paid up. The first call money and the second and final call money was called and duly received.
Pass necessary journal entries for the above transactions in the books of X Ltd. Open Calls-in-Advance Account and Calls-in-Arrears Account wherever necessary.
H Ltd issued a prospectus inviting applications for 20,000 shares of Rs. 10 each at a premium of
Rs. 2 per share payable as follows:On application Rs. 2On allotment Rs. 5 ( including premium) On First Call Rs. 3On Second and Final Call the balance.Applications were received for 30,000 shares and prorate allotment was made on theapplications for 24,000 shares. Money overpaid on applications was employed on account ofsum due on allotment.Ramesh, to whom 400 shares were allotted, failed to pay the allotment money and on hissubsequent failure to pay the first call his shares were forfeited. Mohan, holder of 600 shares,failed to pay the two calls and his shares were forfeited after the second call. All the forfeitedshares were sold to Krishna credited as fully paid for Rs. 9 per share. Show the journal entriesin the books of the company.Illustration 35 (Comprehensive Illustration). Paliwal Exports Ltd. with a share capital of Rs 10,00,000 divided into 20,000 Equity Shares of Rs 50 each offers Equity Shares to the public as follows :
Rs 10 payable on application, Rs 10 payable on allotment, Rs 15 payable on first call and Rs 15 payable on second call.
Shareholder 'A' who holds 300 Equity Shares has paid only application money.
Shareholder 'B' who holds 200 Equity Shares has paid application money on 200 Equity Shares and allotment mony on only 100 Equity Shares. He has not paid any other calls.
Shareholder 'C' who holds 180 Equity Shares has paid only application and allotment money.
Shareholder 'D' who holds 50 Equity Shares has paid application, allotment and first call money.
Shareholder 'E' who holds 30 Equity Shares has paid application, allotment and first call money in full and second call money on only 20 Equity Shares.
The company forfeits the shares of the above shareholders who have not paid the arrears.
Journalise above transactions including entries relating to Bank in the books of Paliwal Exports Ltd.
Rs.
On Application 3
On allotment 4 (including premium)
On first call 2
On second and final call 2
Applications were received for 20,000 shares. Application for 5,000 shares were rejected and allotment was made proportionately to the remaining applicants . The directors made both the calls and all the money were received , except the allotment , first call and final call on 400 shares , which were subsequently forfeited , Later , 300 of the forfeited shares were re-issued as fully paid @ Rs. 15 per shares . Give journal entries to record the above.
Hint : Securities Premium Reserve Account has been debited in the entry of forfeiture because it is assumed that entire excess application money received on forfeited shares is utilised for share capital.
why goodwill account is debited while issuing shares to promoters ?
Shakti Ltd. invited applications for issuing 1,00,000 equity shares of Rs.10 each. The amount was payable as follows:
On application-Rs.3 per share
On allotment-Rs.2 per share
On First and Final Call-Rs.5 per share.
Applications were received for 2,20,000 shares. Applications for 20,000 shares were rejected and their application money was refunded. Shares were alloted to the remaining applicants as follows:
(i) Alloted 50% shares to Raman who had applied for 40,000 shares.
(ii) To allot in full to Akbar who had applied for 20,000 shares.
(iii) To allot balance of shares in pro-rata basis to the other applicants.
Excess apllication money was utilized in payment of allotment and final call. All calls were made and were duly received except the first and final call in 600 shares alloted to an applicant in (iii) category. His shares were forfeited.
The forfeited shares were re-issued for Rs.9 per share fully paid up.
Hema Ltd. invited applications for issung 30,000 equity shares of Rs.100 each at a premium of Rs.20 each. The amount was payable as follows:
(i) On application and allotment-Rs.40(including premium Rs.10) per share.
(ii) On first call-Rs.50(including premium Rs.10) per share.
(iii) On second and final call-balance.
Applications for 75,000 shares were received. Applications for 15,000 shares were rejected and the money received from them was refunded. Shares were alloted on pro-rata basis to the remianing applicants. All calls were made. "A" who had applied for 2,000 shares failed to pay the first call and second and final call on the shares alloted to him. "B" who was alloted 1,000 shares failed to pay the second and final call. The shares of both "A" and "B" were forfeited. The forfeited shares were re-issued at Rs.160 fully paid.
Pass the necessary journal entries in the books of the company for the above transactions.
3. Shakti Ltd. invited applications for issuing 1,00,000 Equity shares of Rs 10 each. The amount was payable as follows : On Application Rs 3 per share On Allotment Rs 2 per share On First and Final Call per share Applications were received for 2,20,000 shares. Applications for 20,000 shares were rejected their application money was refunded. Shares were allotted to the remaining applicants as follows:
(i) Allotted 50% shares to Raman who had applied for 40,000 shares.
(ii) To allot in full to Akbar who had applied for 20,000 shares.
(ii) To allot balance of the shares on pro-rata basis to the other applicants.
Excess application money was utilized in payment of allotment and final call. All calls were made and duly received except the first and final call on 600 shares allotted to an applicant in III category. His share were forfeited. The forfeited shares were re-issued for Rs 9 per share fully paid up. Pass necessary journal entries in the books of Shakti Ltd. for the above transactions. ( 2011 Board Exam )
How to calculate forfeiture of shares under prorata category including premium?
X Ltd. issued 40,000 equity shares of Rs.10 each at a premium of Rs.2.50 per share. The amount was payable as follows :Application - Rs.2 per shareAllotment - Rs. 4.50 per share (including premium)and on Call - Rs.6 per shareOwing to heaving subscription, the allotment was made on pro rata basis as follows :(i) Applicant for 20,000 shares were allotted 10,000 shares.(ii) Applicants for 56,000 shares were allotted 14,000 shares.(iii) Applicants for 48,000 shares were allotted 16,000 shares.It was decided that excess amount received on applications would be utilized on allotment and the surplus would be refunded.Ram, to whom 1000 shares were allotted, who belongs to category (i), failed to pay allotment money. His shares were forgeited after the call.Pass the necessary journal entries.How to make the Analysis table for this?
On application Rs. 2.50, on allotment Rs. 2.50, on first call Rs. 3 and on final call the balance. Applications were received for 1,35,000 shares. Allotments were made on the following basis :
(i) To applicants for 25,000 shares— in full;
(ii) To applicants for 60,000 shares — 45,000 shares
(iii) To applicants for 50,000 shares — 30,000 shares.
All excess amount paid on application is to be adjusted against amount due on allotment.
The shares were fully called and paid-up except the amount of allotment, first and final call not paid by those who applied for 4,000 shares of the group applying for 50,000 shares.
All the shares on which calls were not paid were forfeited by the Board of Directors. 1,800 forfeited shares were re-issued as fully paid on receipt of Rs. 9 per share.
Prepare Cash Book and Journal entries to record the above.
(Ans. Cash received on Allotment Rs. 1,60,500; Bank Balance Rs. 10,02,200; Capital Reserve Rs. 5700)
Janta Ltd. had an authorised capital of rs. 2,00,000 divided into equity shares of rs. 10 each. The company offered for subscription rs. 1,00,000 shares. The issue was fully subscribed. The amount payable on application was rs. 2 per share. Rs. 4 per share was payable each on allotment and first and final call. A shareholder holding 100 shares failed to pay the allotment money. His shares were forfeited. The company did not make the final call.
Show how the SHARE CAPITAL will be shown in the company's balance sheet. Also prepare Notes to Accounts for the same.
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
the applicants for 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 per
share, the whole of B's share being included. Prepare Cash Book and Journal.
₹3 on Application
₹ 4 on Allotment (including premium)
₹ 2 on Ist Call
ts grewal solutons company issue of shares,question no 7 solution
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 final call. The issue was fully
subscribed and all amounts due were received except the first and final
call money on 2,000 shares allotted to Chavi. Her shares were forfeited.
Present the "Share Capital' in the Balance Sheet of the company as per
Schedule III, Part I of the Companies Act, 2013. Also prepare "Notes to
Accounts'.?
can u tell me how to solve pro rata questions..???/
(Pro-rata allotment in different ratio).
ABC Ltd., issued a prospectus inviting applications for 1,00,000 shares of Rs.10 each. These shares were issued at par on the following terms:
On applicatio Rs.3
On allotment Rs.4
On 1st call Rs.2 and
On final call the balance.
applications were received for 1,20,000 shares. Allotments were made on the following basis:
All excess amount paid on application is to be adjusted against amount due on allotment.
The shares were fully called and paid up except amount of allotment, 1stand final call not paid by those who applied for 4,000 shares out of the group applying for 40,000 shares.
All the shares on which calls were not paid were forfeited by the Board of Directors.
2,000 forfeited shares were reissued as fully paid on receipt of Rs.8 per share.
Show the Journal Entries in the books of ABC Ltd.
Please also show the working notes of it.
how is share capital shown in company's balance-sheet?
can anyone explain me example 3??
how the amount of share capital amount rs.300 is multiplied by 32??
(i) A Ltd. forfeited 100 shares of Rs. 10 each fully called-up for non-payment of first call of Rs. 3 per share and final call of Rs. 3 per share. All of these shares were re-issued as fully paid for Rs. 10 per share.
(ii) B Ltd. forfeited 400 shares of Rs. 10 each fully called-up for non-payment of final call of Rs. 3 per share. 300 of these shares were re-issued as fully paid for Rs. 8 per share.
iii) C Ltd. forfeited 700 shares of Rs. 10 each fully called-up on which the holder has paid application money @Rs. 3 and allotment money@ Rs. 2 per share. Out of these, 600 shares were re-issued as fully paid@ Rs. 7 per share.
iv) D Ltd. forfeited 1,000 shares of Rs. 10 each fully called-up on which the holder has paid only the application money @ Rs 3 per share. Out of these, 600 shares were re-issued at 10.50 per share, fully paid up.
Q. 39. Pass journal entries for the forfeiture and re-issue in the following cases :
(a) X Ltd. forfeited 700 shares of Ashok of Rs. 10 each Rs. 8 called-up, on which he had paid Rs. 5 per share. Out of these, 500 shares were re-issued for Rs 9 per share as fully paid.
(b) Y Ltd. forfeited 400 shares of Rs. 10 each, Rs. 6 called-up, for non-payment of first call of Rs. 2 per share. Out of these, 300 shares were immediately re-issued at Rs. 5 per share.
(c) Z Ltd. forfeited 300 shares of Rs. 100 each on which first call of Rs. 20 per share was not received, the second and final call of Rs. 30 per share has not yet been called. Out of these, 200 shares were re-issued as Rs 70 paid-up for Rs.55 per share.
All calls were made and were duly received except the final call of Rs 3 per share on 2,000 shares. These shares were forfeited.
(a) Present the share capital in the Balance Sheet of the company as per Schedule III of the Companies Act, 2013.
(b) Also prepare 'Note to Accounts' for the same.
PetromaxLtd., issued 50,000 shares of Rs.10 each at a premium of Rs.2 per share payable as Rs.8 on application,Rs.5 including premium on allotment and the balance in equal installment over two calls applications were received for 92,000 shares and the allotment was done as under :
A. Applications of 40,000 shares allotted 30,000 shares
B. Applicants of 40,000 shares allotted 20,000 shares
C. Applicants of 12,000 shares nil
Suresh who had applied for 2,000 shares (category A) did not pay any money other than application money. Chandar who allotted 800 shares (category B) paid the call money due along with allotment. All other allottees paid their dues as per schedule.
Pass necessary journal entries in the books of Petromax Ltd. to record the above transactions.
Meena ltd.issued 60000 shares of Rs.10 each at a premium of Rs. 2 per share payable as Rs.3 on application, Rs. 59(including premium0 on allotment and the balance on first and final call.Applications were received for 1,02,000 shares.The Directors resolved to allot as follows:
A.Applicants of 60000 shares - 30000 shares
B.Applicants of 40000 shares - 30000 shares
C.Applicants of 2000 shares - Nil
Nikhil, who had applied for 1,000 shares in category A and Vish who was allotted 600 shares in category B failed to pay allotment money.
calculate the amount received on allotment.
solution of qwes no 115 of ts grewal....(share capital)
Apollo Ltd. issued for public subscription 40,000 equity shares of rs. 10 each at a premium of rs. 2 per share payable as under:
applications were received for 60,000 shares. Allotment was made on pro-rata basis to the applicants of 48,000 shares, the remaining applications were being refused. Money overpaid on application was utilised towards sum due on allotment.
Ram to whom 1,600 share were allotted failed to pay the allotment and shyam to whom 2,000 shares were allotted failed to pay the two calls. These shares were subsequently forfeited after the second call was made. All the forfeited shares were reissued as fully paid-up at Rs. 8 per share.
Give the necessary journal entries for the above transactions.
which value has been affected by rejecting the applications of the applicants who had applied for 12,000 shares? suggest an alternative for the same.