Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

1. (a) VIJAY Ltd. issued 25000 Equity shares of ₹ 10 each at par. Full amount receipts in lumpsum along with the application. Pass the necessary Journal entries in the books of the company.
(b)The Hindustan Limited issued 50000 equity shares of Rs. 10 each at par. Full amount receipts along with the application. Pass journal entries in the books of the company.

2. (a) SANJAY Ltd. issued 18000 Equity shares of ₹ 10 each at 20% Premium. Full amount receipts in lumpsum along with the application. Pass the necessary Journal entries in the books of the company.
(b) The Hindustan Limited issued 60000 equity shares of Rs. 10 each at 20% premium. Full amount receipts alongwith the application. Pass journal entries in the books of the company.

3. Ashok Ltd. issued 12000 Equity shares of ₹ 10 each. The amount payable on shares was
₹ 3 on application,
₹4 on allotment and
₹3 on First & Final Call.
All the shares were subscribed & all calls were received on due dates. Pass the necessary Journal entries in the books of the company.

4. MOHIT Ltd. issued 10000 Equity shares of ₹ 10 each at 20% Premium. The amount payable on shares was
₹ 3 on application,
₹6 on allotment (with Premium) and
₹3 on First & Final Call. All the shares were subscribed & all calls were received on due dates. Pass the necessary Journal entries in the books of the company.

5. RACHIT Ltd. issued 20000 Equity shares of ₹ 10 each at par. The amount payable on shares was
₹ 3 on application,
₹4 on allotment and
₹3 on First & Final Call.
Application for 18000 shares were received, which were allotted. Full amount received on due dates. Pass the necessary Journal entries in the books of the company.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

6.(a) BHARAT Ltd issued for public subscription 40,000 equity shares of ₹ 10 each. Application received for 50,000 shares .Amount payable as under:

On application ₹2 per share,
on allotment ₹ 5 per share,
on first and Final call ₹3 per share.
All duly money received. Excess application rejected and money returned. Pass journal entries in the books of company.

(b) BHARAT Ltd issued for public subscription 40,000 equity shares of Rs. 10 each. Application received for 50,000 shares . 40,000 shares allotted to 50,000 applicants on pro-rata basis and Excess application money adjusted with allotment. Amount payable as under:

On application ₹ 3 per share,
on allotment ₹ 5 per share,
on first and Final call ₹2 per share. All duly money received. Pass journal entries in the books of company.

(c) BHARAT Ltd. issued a prospectus for inviting applications from the public for 20,000 equity shares of ₹10 each. The amounts were payable as follows:
₹ 3 on Application,
₹ 4 on Allotment and
the balance on First and final call.
Applications were received for 25,000 shares & the allotment was made as follows:
Full Allotment on applications for 15,000 shares;
5,000 shares on applications for 8,000 shares.
No allotment was made on applications for 2,000 shares. Rejected application money returned and Excess application money was adjusted with allotment. Pass Journal entries in the books of the company.

7. ARADHYA Ltd. issued a prospectus for inviting applications from the public for 30,000 equity shares of ₹10 each at 20% Premium. The amounts were payable as follows:
₹ 3 on Application,
₹ 6 on Allotment(With Premium) and
the balance on the First and final call.
Applications were received for 40,000 shares & the allotment was made as follows:
Full Allotment on applications for 20,000 shares;
10,000 shares on applications for 15,000 shares.
No allotment was made on applications for 5,000 shares. Rejected application money was returned and Excess application money was adjusted with allotment. Pass Journal entries in the books of the company.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

8. VIJAYA Ltd. issued a prospectus for inviting applications from the public for 50,000 equity shares of ₹10 each at par. The amounts were payable as follows:
₹ 3 on Application,
₹ 5 on Allotment(With Premium) and
the balance on the First and final call.
Applications were received for 1,00,000 shares & the allotment was made as follows:
Full Allotment on applications for 30,000 shares;
20,000 shares on applications for 60,000 shares.
No allotment was made on applications for 10,000 shares. Rejected application money returned and Excess application money was adjusted with allotment subsequent calls. Pass Journal entries in the books of the company.

9. SHIRSTI Co. Ltd. Purchased a machine from POORVA Co. Ltd for ₹ 6,40,000. It was decided to pay ₹ 1,00,000 in cash and the balance paid by the issue of Equity shares of ₹10 each.
Pass journal entries if shares are:
(a) Issued at par
(b) Issued at a premium of 20%

10. BHARAT COMPANY LTD. purchased assets of HMT Ltd. for Rs. 99,000. The purchase consideration was agreed to be paid in terms of equity shares of BHARAT COMPANY LTD. You are required to pass necessary Journal Entries in the following cases :

(a)Shares issued at par of Rs. 10 each.
(b) Shares issued at premium of 10%.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

11. A company issued 15,000 fully paid up equity shares of ₹100 each for the purchases of the following assets and liabilities from JAY Ltd.
Plant – ₹ 3,50,000; Stock ₹4,50,000; Land and Building ₹ 6,00,000; Sundry Creditors ₹ 1,00,000. Pass necessary Journal entries in the books of the company.

12. X Company Ltd issued 12,000 fully paid-up equity shares of ₹100 each for the purchases of the following assets and liabilities from JAY Ltd.
Plant – ₹ 3,50,000; Stock ₹4,50,000; Land and Building ₹ 6,00,000; Sundry Creditors ₹ 1,00,000. Pass necessary Journal entries in the books of the company.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

13. Jay Ltd. took over the assets of ₹ 14,00,000 and liabilities of ₹ 4,00,000 from Vijay Ltd. for a purchase consideration of ₹ 9,10,000. Jay Ltd. issued a promissory note of ₹ 60,000 payable after 60 days in favour of Vijay Ltd. and the balance amount was paid by issue of equity shares of ₹ 100 each at a premium of ₹ 25 per share. Pass necessary Journal entries for the above transactions in the books of Jay Ltd.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

14. 25,000 Shares of each were issued for public subscription at a premium of 20%. Full amount was payable on application. Applications were received for 30,000 Shares and the Board of directors decided to allot the shares on a pro rata basis. Pass necessary Journal entries in the books of the company.

15. 20,000 Shares of each were issued for public subscription at a premium of 10%. Full amount was payable on application.
Applications were received for 30,000 Shares and the Board of directors decided to allot- 20,000 shares on applications for 26,000 shares on a pro-rata basis, No allotment was made on applications for 4,000 shares. Rejected application money returned. Pass necessary Journal entries in the books of the company.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

16. Madan Ltd. took over running business of Mohan Ltd. comprising of Assets of ₹ 46,00,000 and Liabilities of ₹ 7,40,000 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 books of Madan Ltd.

17. BHARAT Ltd issued for public subscription 40,000 equity shares of ₹10 each. Application received for 60,000 shares . 40,000 .Allotment of Shares on pro-rata basis as follows-

30,000 applicants = 30,000

20,000 applicants = 10,000

10,000 applicants = NIL

Excess application money adjusted with allotment and rejected application money returned. Amount payable as under:
On application ₹ 2 per share,
on allotment ₹ 5 per share,
on first and Final call ₹ 3 per share. All duly money received. Pass journal entries in the books of company.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

18. RACHIT Ltd. issued 40,000 shares of ₹ 10 each at a premium of ₹ 2 each. payable ₹ 5 on application including premium,₹ 4 on allotment and ₹ 3 on call.
Company received applications for 55,000 shares and allotment was made as under:
(i) Applicants for 20,000 shares were allotted in full.
(ii) Applicants for 25,000 shares were allotted 20,000 shares.
(iii) Applicants for rest shares were allotted Nil shares.

Mr. Kapil who was allotted 1000 shares under category (i) paid full amount due on allotment.
Mr. Anil holding 2000 shares failed to pay call money. Pass journal entries in the books of company.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

19. RAMAN 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, 2021 ₹ 2
On Allotment on 1st July, 2021 ₹ 5 (including premium)
On 1st and Final Call on 1st October, 2021 ₹ 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, 2022.
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 2021-22:
(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).

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

20. NANDINI 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 first and final call.
Applications were received for 6, 50,000 shares.
Allotment was made as follows:
(a) Applicants of 4, 00,000 shares were allotted in full.
(b) Applicants of 2, 00,000 shares were allotted 50% on pro-rata basis.
(c) Applicants of 50,000 shares were issued letters of regret.
A shareholder to whom 1,000 shares were allotted under category (a) paid full amount on shares allotted to him along with allotment money.
Another shareholder to whom 2,000 shares were allotted under category (b) failed to pay the amount due on allotment and call. Pass journal entries in the books of company.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

21. DINCY Ltd. invited applications for 1,00,000 shares of ₹ 10 each at a premium of 20% payable as follows:
On Application ₹3
On Allotment ₹ 5 (including premium)
On first & final call ₹4
The applications were received for 92,000 shares and all of these were accepted.All money due were received except the first and final call on 2,000 shares which were forfeited. 1,000 shares were re-issued @ ₹9 per share as fully paid. Assuming that all requirements of law were complied with, show how these transactions will be reflected in the company’s Balance Sheet.

22. SHIRSTI Ltd. issued 40,000 shares of ₹10 each at a premium of ₹ 4 per share, payable as under:
₹ 4 on application,
₹ 7 on allotment (including premium) and
₹ 3 on first and final call. The issue was fully subscribed. Mr. jay, a holder of 200 shares, failed to pay the allotment and his shares were forfeited immediately. Bhagat, a holder of 100 shares, did not pay the call money and his shares were also forfeited. 250 shares (including all the shares of jay) were reissued at ₹9 per
share fully paid. Pass journal entries in the books of company.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

23. NISHIKA Ltd. invited applications for 1,00,000 Equity Shares ₹10 each.
payable as ₹ 2 application,
₹ 3 on Allotment and the balance on first and final call.
Application were received for 3,00,000 shares and shares were allotted on prorata basis. The excess application money was to be adjusted against allotment only. Rajesh, a shareholder who has applied for 3,000 shares failed to pay the call money and his shares were forfeited and re-issued at Rs. 8 per share as fully paid.
Pass necessary journal entries in the books of company.

24. VANSHIKA Ltd. issued 50,000 shares of ₹ 10 each at a premium of 10% payable at ₹ 2 per share on application, ₹ 3 on allotment, ₹ 3 each on first and final call.
Applications were received for 70,000 shares. It was decided that:
(a) Refuse allotment to the applicants for 10,000 shares;
(b) Allot 20,000 shares to Naman who had applied for similar number and
(c) Allot the remaining shares on a pro-rata basis.
Naman failed to pay the allotment money and Nikhil who belonged to the category ‘C and was allotted 3,000 shares, paid both the calls with allotment. Calculate the amount received on allotment.

Important questions for practice CBSE and ISC 12 Issue and Forfeiture of shares

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