1) Maharashtra Transport Co. Invited Application for 40000 shares of Rs.100 each at a discount of Rs.4 per share.The amount was to be paid as follows On Application : Rs20/- On Allotment Rs.36/- On first & final call Rs.40 The public applies for 36000 shares and there fully allotted. All the dues were collected with the exception of first and final call on 4000 shares and these were forfeited . 4000 of these shares were re-issued as fully paid for a payment of Rs.30 per share. Make Journal Entries in the Journal of the Company.

1) Maharashtra Transport Co. Invited Application for 40000 shares of Rs.100 each at a discount of Rs.4 per share.The amount was to be paid as follows On Application : Rs20/- On Allotment Rs.36/- On first & final call Rs.40 The public applies for 36000 shares and there fully allotted. All the dues were collected with the exception of first and final call on 4000 shares and these were forfeited . 4000 of these shares were re-issued as fully paid for a payment of Rs.30 per share. Make Journal Entries in the Journal of the Company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subhas Ltd. invited applications for 20000 shares of Rs. 10 each at a premium of Rs.2 per share payable Rs.3 on application; Rs.7 on allotment including premium and the balance on first and final call. Applications for 25000 shares were received. It was decided: · To refuse allotment to the applicants for 1000 shares. · To allot in full to applicants for 4000 shares. · To allot the balance of shares pro-rata among the other applicants of the remaining applicants. · To utilize the excess application money in part payment of allotment money. Mr.‘A’ holding 200 shares which were allotted pro-rata failed to pay the amount due on allotment and call. Mr.‘B’ holding 100 shares to whom full allotment was made failed to pay the call money. Shares of both A and B were forfeited. 160 forfeited shares of ‘A’ and 40 forfeited shares of ‘B’ were reissued to Mr.’C’ Rs.9 per share. Journalize the transactions.
A company issued 10000 equity shares of Rs. 100 each. The payment was called upon as under: On Application- Rs. 30; On Allotment - Rs. 30; On I Call - Rs. 20; On II Call - Rs. 20; On Final Call - Rs. 20. X, holder of 1000 shares failed to pay Il and Final Call and his shares were forfeited. Give entry for issue and forfeiture of share. Also give journal entries for forfeiture, if: i. Shares of X are re-issued to Z for Rs. 80 as fully paid-up. ii. Shares of X are re-issued to Z for Rs. 120 as fully paid-up.
Joy Ltd issued 100000 equity shares of Rs.10 each. The amount was payable as follows: On application - Rs.3/share, On allotment – Rs.4, On first call the balance. Application for 95000 shares were received and shares were allotted to all the applicants. Soni to whom 500 shares were allotted failed to pay allotment money and Christo paid his entire amount due including the amount die on first and final call on the 750 shares allotted to him along with the allotment. The amount received on allotment was: 380000 378000 O 380250 O 378250
HI Ltd. Forfeited 10 shares of Rs 10 each (Rs.6 called up) issued at a discount of 10% to Mr. Y on which he had paid an application money of Rs. 2 per share. Out of these, 8 shares werereissued to Z as Rs.8 called up for Rs.9 per share. Journalize.
Brad company Issued 10,000 shares of Rs. 100 each at 10% premium. The payments were to be made as follows. Rs. On application 20 On allotment 40 (including premium) On call 50 Applications for 20,700 shares were received. one application for 700 shares was rejected. Rest were allotted on pro-rata basis. All money was received except the call money on 100 shares. These shares were forfeited and re-issued as fully paid at Rs. 95 per share. Pass journal entries.
The purchasing company Janma Ltd. agrees to issue two shares of Rs. 100 each, Rs. 75 paid up for every three shares in the vendor company Jay Ltd. Jay Ltd. has Rs. 6,00,000 paid up capital of Rs. 100 each, Rs. 50 paid up. Calculate the number of shares and amount to be paid by purchasing company as purchase consideration.
The directors of M Ltd. Resolved that 2000 equity shares of Rs 10 each on which Rs. 7.50 was paid be forfeited for non payment of final call of Rs 2.50 of these 1800 shares were reissued as fully paid for Rs 6 per share. Journalize.
Eee ltd. forfeited 200 shares of Rs 10 (Re 8 called up) on which the holder had paid application and allotment money of Re. 5 per share. Out of which 50 shares were re-issued to F Ltd. As fully paid for Re. 8 per share. Journalize.
Green Ltd invited applications for 10,000 shares of Rs.100 each at a discount of 6% payable as follows; on application - Rs.25 On allotment - Rs.34 and on first and final call Rs.35. The applications received were for 9,000 shares and all of these were accepted. All money due were received except the first and final call on 100 shares which were forfeited. 50 shares were reissued @ Rs.90 as fully paid. Pass journal entries in the books of Green Ltd.
ABC Ltd., has part of its share capital as 10,000 Redeemable Preference Shares of Rs. 100 each. When the shares became due for redemption, the company decided that the whole amount will be redeemed out of a fresh issue of equal amount of equity shares of Rs. 10 each. Show the journal entries in the books of the company.
Sakshi Ltd. Issued a prospectus ,inviting application for 100000 shares of Rs.10 each at a.premium of Rs.5 per share , payable as follows:On application Rs.4.50; on allotment Rs.7.50(including premium); on first call Rs.2 and on final call Re.1.00. Application were received for 125000 shares and allotment was made pro-rated to the pplicantss of 120000 shares, remaining application being refused. Money received in excesson the application was adjusted towards the amount due to allotment. D, to whom 2000 shares were allotted, failed to pay allotment money and on his failure to ayy the first call, is shares were forfeited. M, the holder of 3000 shares, failed to pay the calls, and so is shares were also forfeited. All hesee shares were sold to R, credited as fully paid for Rs.8 per share. Pass necessary journalentries to record the above issue of shares by the company.
Amex Ltd. Forfeited 10 shares of Re. 10 each (Re. 6 called up) issued at a discount of 10 % to Mr. Y on which he has paid an application money of Re. 3 per share.Out of these, 8 shares were re-issued to Z as Re. 8 called up for Re. 9 per share. Journalize.