ISC 12 Issue of Shares Questions Previous Papers
Question 1.
NH Ltd., with an authorized capital of ₹10,00,000 divided into 1,00,000 Equity shares of ₹10 each, issued 50,000 shares to the public at a premium of ₹2 per share, payable as follows:
₹ 5 on Application (including premium)
₹3 on Allotment
₹4 on First & Final Call.
The subscription was at par and the share money was received in full with the exception of the allotment money on 4,000 shares held by shareholder Ravi and the call money on 6,000 shares (including Ravi’s shares).
The above 6,000 shares were forfeited by the company and 5,000 of these (including the shares which had been allotted to Ravi) were reissued at ₹8 per share as fully paid up.
You are required to pass journal entries to record the above transactions in the books of the company.[ISC 2023]
ISC 12 Issue of Shares Questions Previous Papers
Question 2.
MV Ltd. was registered with a capital of 2,00,000 divided into 10,000 Equity shares of
20 each, payable as follows:
On Application ₹5 per share
On Allotment ₹7 per share
On First & Final Call ₹ 8 per share
The company offered 5,000 shares to the public for subscription. It received applications
for 6,700 shares.
From amongst the applicants:
(i) Vimal, who had applied for 1,500 shares, paid 7,500 on application but was
allotted only 800 shares.
(ii) Abhay, who had applied for 2,000 shares, paid the full amount of 40,000 with his application but was allotted only 1,000 shares.
(iii) Nitin, who had applied for and allotted 500 shares, did not pay the allotment and call money when due.
(iv) The remaining applicants paid as and when due.
The surplus money paid by both Vimal and Abhay was used towards allotment and call and any surplus beyond the call was refunded.
The company forfeited Nitin’s shares after the final call.
You are required to pass journal entries to record the above transactions in the books
of the company. [ISC 2023]
ISC 12 Issue of Shares Questions Previous Papers
Question 3.
In the year 2021-22, Yamuna Limited Co. was registered with an authorized capital of
₹ 1,00,000 in ₹ 10 per Equity share.
Of these, 4,000 equity shares were issued as fully paid to vendor for the purchase of Plant
and Machinery and 6,000 shares were subscribed for by the public.
During the first year, ₹ 6 per Equity share was called up, payable:
₹ 3 on Application
₹ 1 on Allotment
₹ 2 on the First Call
The amounts received in respect of these shares were as follows:
On 5,000 shares the full amount called
On 600 shares ₹ 4 per Equity share
On 400 shares ₹ 3 per Equity share.
The company forfeited all those shares on which only ₹ 3 had been received and reissued
them at ₹ 4 per share.
You are required to:
(i) Pass journal entries to record the above transactions in the books of the
company.
(ii) Prepare the Calls-in Arrears Account. (ISC SPECIMEN QUESTION PAPER 2023)
ISC 12 Issue of Shares Questions Previous Papers
Question 4.
Tapsi Ltd. invited applications from the public for the issue of 55,000 Equity shares of ₹ 10
each payable as:
₹ 3 on Application
₹ 5 on Allotment
Balance on Call
The public applied for 50,000 shares which were duly allotted by the company.
₹ 2,49,000 were received by the company on allotment and ₹ 99,400 on call.
The company forfeited those shares on which both, allotment and call money was not
received.
70% of the forfeited shares were reissued at ₹ 7 per share, fully called up.
The company paid share issue expenses of ₹ 20,000 which were completely written off at
the end of the year.
The company had ₹ 15,000 in its Securities Premium Reserve Account.
You are required to pass journal entries to record the above transactions in the
books of the company. (ISC SPECIMEN QUESTION PAPER 2023)
Question 5.
Nickel Ltd. issued Equity shares of ₹10 each at a premium of ₹3 per share payable as
₹4 per share on application, ₹5 per share on allotment (including premium), ₹2 per share
on first call and ₹2 per share on final call.
Amit, who had applied for 2,000 shares, was allotted 1,200 shares. He failed to pay the
allotment money and on his failure to pay the first call his shares were forfeited.
Out of the forfeited shares, 1,000 were reissued at ₹7 per share.
You are required to pass journal entries for forfeiture and reissue. (ISC SPECIMEN QUESTION PAPER – 2017 )
ISC 12 Issue of Shares Questions Previous Papers
Question 6.
Carbon Ltd. forfeited 800 shares of ₹20 each issued at a premium of ₹2 per share
(₹18 called up) on which first call of ₹4 per share was not paid.
Of these 300 shares were re-issued @ ₹15 per share as ₹18 paid up.
You are required to pass journal entries for forfeiture and reissue. (ISC SPECIMEN QUESTION PAPER – 2017 )
ISC 12 Issue of Shares Questions Previous Papers
Question 7.
Palms Ltd. was formed on 1st November, 2015, with a capital ₹12,00,000 divided into
Equity shares of ₹10 each at a premium of ₹2 per share. It offered 1,00,000 shares to the
public.
The issue price was payable as follows:
₹4 with application
₹6 with allotment (including premium)
The balance as and when required.
The balance was not called till the date of the Balance Sheet.
All the shares offered by the company were subscribed for. One shareholder holding
1,000 shares paid the balance with allotment.
Another shareholder holding 800 shares did not pay the allotment money when due.
You are required to show the items under Equity and Liabilities in the Balance Sheet
of the Company (prepared as per Schedule III of the Companies Act 2013) at the end
of the financial year with Notes to Accounts. (ISC SPECIMEN QUESTION PAPER – 2017 )
ISC 12 Issue of Shares Questions Previous Papers
Question 8.
Sudesh Ltd. was registered with an authorised capital of ₹ 40,00,000 divided into
4,00,000 Equity Shares of ₹ 10 each.
The company offered 50,000 shares to the public at a premium of ₹ 2 per share,
payable as follows:
₹ 3 on application
₹ 6 on allotment (including premium)
₹ 3 on first and final call (due two months after allotment)
Applications were received for 60,000 shares and pro-rata allotment was made as
follows:
Category A: The applicants of 40,000 shares were allotted 30,000 shares.
Category B: The applicants of 20,000 shares were allotted in full.
Excess money paid on application was utilized towards allotment.
Nobby, a shareholder from Category A, who had applied for 1,200 shares failed to pay
the allotment and call money.
Vineet, a shareholder from Category B, who had been allotted 1,000 shares, paid the
call money due, along with allotment.
The company forfeited Nobby’s shares after the first and final call and paid interest on
Calls-in-advance to Vineet @ 12% per annum on the day of the final call.
You are required to:
(i) Pass journal entries to record the above transactions in the books of the
company (including entries for interest on Calls-in-advance).
(ii) Prepare Calls-in-arrears Account. [ISC 2020]
ISC 12 Issue of Shares Questions Previous Papers
ISC 12 fundamentals of partnership questions (previous papers)
Question 9.
Xylo Ltd. was formed on 1st April, 2017, with an authorized capital of
₹ 12,00,000 divided into Equity Shares of ₹ 10 each. It issued a prospectus
inviting applications for 30,000 shares to be issued at par. The issue was fully
subscribed and the amount due on the shares was received by the company.
On 1st April, 2018, the company issued another 60,000 shares at a premium of
₹ 2 per share to be received with allotment. Applications for 55,000 shares were received which were duly allotted.
All the amounts due on these shares were received except the final call of
₹ 2 per share on 1,000 shares.
On 1st October, 2018, the company also issued 2,000 6% debentures of ₹ 100
each at par, to be redeemed at par in five equal annual instalments beginning
from 1st October, 2019. The entire issue price of these debentures was received
by the company with application.
Half yearly interest on the debentures of ₹ 6,000 was paid by the company to
the debenture holders on 31st March, 2019.
You are required to show the relevant items under:
(i) Equity and Liabilities in the Balance Sheet of the Company as at 31st March, 2019 (prepared as per Schedule III of the Companies Act, 2013).
(ii) Notes to Accounts [ISC 2020]
ISC 12 Issue of Shares Questions Previous Papers
Question 10.
Meera Co. Ltd. invited applications for 50,000, equity shares of ₹ 10 each at a
premium of ₹ 2 per share, payable as follows:
On Application on 1st May, 2017 ₹ 2
On Allotment on 1st July, 2017 ₹ 5 (including premium)
On 1st and Final Call on 1st October, 2017 ₹ 5
The Company received applications for 62,500 shares.
It was decided to:
(a) Refuse allotment to the applicants of 2,500 shares.
(b) Allot in full to the applicants of 10,000 shares.
(c) Allot the balance of the shares applied on a pro-rata basis among the
other applicants.
(d) Utilize the excess application money in part payment of allotment money.
(e) Charge interest on calls-in-arrears, if any, @ 10% per annum.
All the money due was received except from one shareholder to whom 200
shares had been allotted in full. The amount was due by him to the company
even till the date of the Balance Sheet, which was 31st March, 2018.
The company charged interest on calls-in-arrears from the shareholders from the
date on which it was due till the Balance Sheet date.
You are required to, for the year 2017-18:
(i) Prepare the Cash Book to record the above issue of shares.
(ii) Pass journal entries in the Journal Proper (including entries for
interest on calls-in-arrears). [ISC 2019]
ISC 12 Issue of Shares Questions Previous Papers
Question 11.
Saturn Ltd. was registered with an authorized capital of ₹ 12,00,000, divided into
1,20,000 equity shares of ₹ 10 each. It issued 40,000 equity shares to the public at a
premium of ₹ 5 per share, payable as follows:
On application ₹ 6
On allotment ₹ 9 (including premium of ₹ 5)
All the shares were applied for and allotted. One shareholder holding 500 shares did
not pay the allotment money and his shares were forfeited. Out of the forfeited shares,
the company reissued 400 shares at ₹ 7 per share fully called up.
You are required to:
(a) Pass journal entries in the books of the company.
(b) Prepare:
(i) Securities Premium Reserve Account.
(ii) Share Capital Account. [ISC 2018]
Hidden Goodwill at the time of Admission of A New Partner
ISC 12 Issue of Shares Questions Previous Papers
Question 12.
Cargo Ltd. invited applications for the issue of 20,000 Equity Shares of ₹10 each at a premium of 1 per share, payable as follows:
On Application ₹3
On Allotment The balance (including premium ₹1)
Applications were received for 30,000 shares and pro-rata allotment was made to the remaining applicants after refunding application money to 5,000 share applicants.
Nicholas, who was allotted 3,000 shares, failed to pay the allotment money and his shares were forfeited.
Out of these forfeited shares, 1,000 shares were reissued as fully paid-up @ ₹8 per share.
You are required to:
(i) Pass journal entries in the books of the company.
(ii) Prepare Calls-in-arrears Account.
(iii) Prepare Share Forfeiture Account. [ISC 2017]
ISC 12 Issue of Shares Questions Previous Papers
Question 13.
Pioneer Ltd. invited applications for 12,000 shares of ₹100 each to be issued at a premium of 10% payable as follows:
₹25 On Application
₹ 40 On Allotment
₹ 35On First & Final Call
Applications were received for 10,000 shares and all of these were accepted. All the money due was received except the first and final call on 100 shares which were forfeited. 60 of these forfeited shares were reissued @ ₹90 per share credited as fully paid.
You are required to:
(a) Pass the necessary Journal Entries.
(b) Prepare the Balance Sheet of the company. [ISC 2017]
ISC 12 Issue of Shares Questions Previous Papers
Important questions of fundamentals of partnership-5
Question 14.
During the year 2014-15, ABC Ltd. issues 10000 equity shares 0f ₹50 each at ₹55 per share payable as follows:
₹15 On Application
₹20 On Allotment (Including Premium ₹5)
₹ 20On First & Final Call
All the issued shares were subscribed for by the public. One shareholder holding 500 shares did not pay the amount due on allotment and his shares were immediately forfeited.
Another shareholder holding 100 shares paid the amount of the 1st and Final Call with allotment.
After the company had made the 1st and Final Call, 200 of the forfeited shares were reissued as fully called up at ₹45 per share.
The share issue expenses were ₹7,000 which were written off at the end of the year.
You are required to pass journal entries in the books of the company for the year ending 31st March, 2015. Also prepare the Opening Balance Sheet. [ISC 2016]
ISC 12 Issue of Shares Questions Previous Papers
ISC 12 Admission of partner questions (previous papers)