Accounting Of Issue Of Shares
Ashok Ltd. invited application for 15,000 shares of Rs.100/- each. The share amount was payable as under : –
Rs.20/- on Application
Rs.30/- on Allotment
Rs.20/- on First Call &
Rs.30/- on Final Call
Applications were received for 10,000 shares. All moneys were called and duly received. Pass necessary journal entries and prepare ledger account and Balance Sheet.
Q. 2 A Company issued Rs.5,00,000/- new capital divided into Rs.10/- shares at a premium of
Rs.4/- per share payable as On Application Re.1/- per share On Allotment Rs.4/- per share &
Rs.2/- premium On Final Payment Rs.5/- per share & Rs.2/- premium Overpayments on application were to be applied towards sum due on allotment. Where no allotment was made money was to be returned in full. The issue was oversubscribed to the extent of 13,000 shares.
Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 were sent letters of regret. All money due on allotment and final call was duly received. Make the necessary entries in the company’s book.
Q. 3 P & Co. Ltd. issued 5,000 shares of Rs.100/- each. The share amount was payable as follows –
On Application – Rs.30/On Allotment – Rs.30/On First Call – Rs.20/On Final Call – Rs.20/The public applied for 5,500 shares. Applications for 100 shares were immediately rejected. In respect of applicant for 5,400 shares, directors decided that 5,000 shares would be allotted on pro-rata basis and the application money received on 400 shares would be used towards payment of allotment money. You are asked to prepare Cash Book and Ledger accounts assuming that all calls were made and received.
Q. 4 Modi Ltd. issued 4,500 Equity shares of Rs.200/- each payable Rs.20/- per share on application, Rs.80/- per share on allotment, Rs.50/- per share on first call & the balance as & when required. The application list was closed on that date, the analysis of the application showed as under – From Maharashtra 3,500 shares From U.P. 2,000 shares From M.P.
Rs.20/- on Application
Rs.30/- on Allotment
Rs.20/- on First Call &
Rs.30/- on Final Call
Applications were received for 10,000 shares. All moneys were called and duly received. Pass necessary journal entries and prepare ledger account and Balance Sheet.
Q. 2 A Company issued Rs.5,00,000/- new capital divided into Rs.10/- shares at a premium of
Rs.4/- per share payable as On Application Re.1/- per share On Allotment Rs.4/- per share &
Rs.2/- premium On Final Payment Rs.5/- per share & Rs.2/- premium Overpayments on application were to be applied towards sum due on allotment. Where no allotment was made money was to be returned in full. The issue was oversubscribed to the extent of 13,000 shares.
Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 were sent letters of regret. All money due on allotment and final call was duly received. Make the necessary entries in the company’s book.
Q. 3 P & Co. Ltd. issued 5,000 shares of Rs.100/- each. The share amount was payable as follows –
On Application – Rs.30/On Allotment – Rs.30/On First Call – Rs.20/On Final Call – Rs.20/The public applied for 5,500 shares. Applications for 100 shares were immediately rejected. In respect of applicant for 5,400 shares, directors decided that 5,000 shares would be allotted on pro-rata basis and the application money received on 400 shares would be used towards payment of allotment money. You are asked to prepare Cash Book and Ledger accounts assuming that all calls were made and received.
Q. 4 Modi Ltd. issued 4,500 Equity shares of Rs.200/- each payable Rs.20/- per share on application, Rs.80/- per share on allotment, Rs.50/- per share on first call & the balance as & when required. The application list was closed on that date, the analysis of the application showed as under – From Maharashtra 3,500 shares From U.P. 2,000 shares From M.P.