Question 1

Extract of Balance Sheet as at .....

Notes to Accounts

Vikas Ltd

Vikas Ltd has an authorised capital of ₹40,00,000 divided into 4,00,000 Equity Shares of ₹10 each. Out of these, the company invited applications for 3,00,000 equity shares.

The public applied for 2,80,000 shares and all the money was duly received.

Show how Share Capital will appear in the Balance Sheet of the Company. Also Prepare notes to accounts

Question 2

Extract of Balance Sheet as at .....

Notes to Accounts

Tractors India Ltd

Tractors India Ltd. is registered with an authorised capital of ₹10,00,000 divided into 1,00,000 equity shares of ₹10 each. The company issued 50,000 equity shares at a premium of ₹5 per share. ₹2 per share were payable with application, ₹8 per share including premium on allotment and balance on first and final call. The issue was fully subscribed and all the amount due was received except first and final call money on 500 shares.

Present the Share Capital in the Balance Sheet of Tractors India Ltd as per Schedule III Part I of the Companies Act 2013 .Also show notes to accounts.

Question 3

Extract of Balance Sheet as at .....

Notes to Accounts

Nupur Ltd

Nupur Ltd. was registered with an Authorised Capital of ₹20,00,000 divided into 2,00,000 equity shares of ₹10 each. The Company offered 1,50,000 equity shares for subscription to public and applications were received for 1,40,000 shares. The directors called ₹7 per share upto 31st March and the money called was duly received.

Show Share capital in the Balance Sheet of the Company together with the notes to accounts.

Question 4

Extract of Balance Sheet as at .....

Notes to Accounts

Rama Ltd

Rama Co. issued 50,000 shares of ₹10 each payable as follows:

₹3 on Application                      ₹3 on Allotment

₹2 on First Call                         ₹2 on Final Call

All the shares were subscribed and allotted. Give Journal Entries and show how the Share capital will appear in the Balance Sheet assuming that all sums have been duly received. Expenses on issue of shares amounted to ₹10,000.

Journal

Question 5

Dr Bank Account Cr

Notes to Accounts

Z Ltd

Z Ltd was registered with an authorised capital of ₹60,00,000 divided in 60,000 equity shares of ₹100 each. Company issued 25,000 equity shares at a premium of ₹20 per share, payable as follows: ₹30 on Application; ₹45 on allotment (including premium); ₹20 on first call and ₹25 on Second and Final Call.

All shares were subscribed, and all the money was duly received. Share issue expenses amounted to ₹40,000 which were fully written off against Securities Premium.

Prepare necessary journal entries, Bank Account and Opening Balance Sheet.

Journal

Extract of Balance Sheet as at .....

Question 6

Notes to Accounts

Kanpur Gas Ltd

Kanpur Gas Ltd issued 40,000 equity shares of ₹10 each at a premium of ₹1 per share. Amounts were payable as follows: 

₹2.50 on Application; ₹4.50 on Allotment (including premium); ₹2 on First Call and ₹2 on Final Call. 

Applications were received for 37,000 shares. 

Give Journal Entries and Balance Sheet assuming that all sums have been received on due dates.

Journal

Extract of Balance Sheet as at .....

Question 7

Bhawna Ltd

Bhawna Ltd was registered with a nominal capital of ₹1,00,000 divided into shares of ₹10 each. The company purchased assets for ₹27,000 from Bhatia Singhal. The company issued fully paid equity shares of ₹10 each in satisfaction of the claim. Shares of ₹10,000 were issued at par to the promoters for their services.

Give journal entries for the above transactions if Bhatia Singhal were issued shares (i) at par (ii) at premium.

Journal

Question 8

Pass journal entries for the following: 

(i) X Ltd. purchased Land and Building from R Sundram for 5,00,000 payable in fully paid shares of 100 each at a premium of 25% 

(ii) Y Ltd. decided to issue 2,000 shares of 100 each to the Unit Trust of India as Underwriting Commission.

Journal

Question 9

Tagore Ltd. purchased a running business from Tulsi Bros for a sum of ₹48,00,000 payable by issue of fully paid equity shares of ₹20 each at a premium of 20%. The assets and liabilities consisted of the following:

Plant and Machinery ₹25,00,000

Stock ₹15,00,000

Sundry Debtors ₹8,60,000

Sundry Creditors ₹3,00,000

Pass the necessary journal entries in the books of Tagore Ltd.

Journal

Question 10

Madhur Ltd. took over the assets of ₹3,90,000 and liabilities of ₹40,000 of Rasova Ltd. for a consideration of ₹4,00,000. 20% was paid by a cheque and the balance by issue of fully paid equity shares of ₹100 each at a premium of 60%. Show necessary journal entries for these transactions in the books of Madhur Ltd.

Journal

Calculation of No. of Share No of Shares = 3,20,000/160=2000

Question 11

X Ltd issued 20,000, 7% Preference shares of ₹100 each at a premium of 6%. Payments were to be made as – ₹25 on Application, ₹46 on Allotment, ₹10 on First call and ₹25 on Final Call. 

The applications for 18,000 shares were received and all were accepted. All the money was duly received except the first and final call on 100 shares. 

Give the necessary Journal Entries and prepare Cash Book of the Company. Also give the Opening Balance Sheet of the Company.

Journal

Question 12

Vishal Ltd issued 50,000 Equity Shares of 10 each payable as follows: 

₹2 on application payable on 1st June 2020 

₹3 on allotment payable on 1st August 2020 

₹3 on first call payable on 1st Nov 2020 

Balance on final call payable on 1st Jan 2021 

All the shares were subscribed except the following:

(i) Shareholder Suresh, holding 1,000 shares did not pay the first and final call. 

(ii) Shareholder Vasudev, holding 2,000 shares did not pay the first call. 

These amounts were due till the date of Balance Sheet on 31st March 2021. Articles of Association of the Company provided for charging interest on calls in Arrears 10%pa 

Pass necessary journal entries and show Share Capital in Balance Sheet of the company.

Journal

Question 13

Aman Ltd., issued 40,000 shares of 10 each to the public and received the amount as:

On 1.3.2021 with application 2.50; on allotment 2.50 on 1.7.2021; on first call 3 on 1.12.2021 and balance on final call on 1.3.2022. Ramesh who had 500 shares, paid the amount of first and final call with allotment and Mohan, who had 100 shares paid the amount of the final call with first call. According to Articles of Association interest on calls in advance is to be paid @12%. The interest was paid on 1.03.2022. Give Journal entries in the books of the company assuming that books are closed on 31st March every year.

Journal

Question 14

Chandra Ltd., issued 40,000 equity shares of ₹10 each at par payable as to:

₹2.50 on application; ₹2.00 on allotment; ₹2.50 on first call and ₹3.00 on final call (Three months after First Call).

All the shares were allotted and amount received except Mohan holding 800 shares paid the final call money alongwith first call and Naresh holding 300 shares did not pay the first call money in time.

Final call was made. All the shareholders paid in full. First call in arrears on 300 shares alongwith interest on calls in arrears were also received at the time of final call. The company paid interest on calls in advance and charged interest on calls in arrears according to the provisions of Table F of the schedule I of the Companies Act.

Make entries in the company’s journal for transactions relating to first and final call.

Journal

Question 15

A limited Company was registered with a capital of ₹5,00,000 in shares of ₹10 each and issued 20,000 such shares at a premium of ₹2 per share, payable as ₹3 per share on application, ₹4 per share on allotment (including premium) and ₹2 per share on first call made three months later. All the money payable on application and allotment were duly received but when first call was made, one shareholder paid the entire balance on his holdings of 300 shares, and another shareholder holding 1,000 shares failed to pay the first call money.

Give Journal entries to record the above transactions and show how they will appear in company’s Balance Sheet.

Journal

Notes to Accounts

Extract of Balance Sheet

Working Notes:

1.

Question 16

Kaveri Ltd with an authorised capital of 3,00,000 equity shares of ₹10 each, of which 1,50,000 have already been issued, issues a prospectus offering 1,00,000 shares at a premium of ₹2 per share payable as follows:

On Application ₹5 (including premium)

On Allotment ₹3

On First Call ₹2

On Second & Final Call ₹2

The issue was oversubscribed and money relating to 12,000 applicants was returned.

All Calls were made. 

Allotment money was not received on 1,000 shares;

First Call money was not received on 1,500 shares;

Second and Final Call money was not received on 2,200 shares; 

You are required to : 

(i) Record the foregoing transactions of Kaveri Ltd., by way of Ledger Accounts 

(ii) Show the relevant items in Balance Sheet

Ledger

Dr Bank Account Cr