Unit 1
Unit 1
Unit 1
COMPANY ACCOUNTS
Introduction to Company Accounts
The word company is derived from the Latin word, companies, ‗ come‘ meaning
together and ‗panis‘ meaning bread. So, companies means earning bread together. This word
came to be substituted to company which means carrying on a enterprise together.
A company is a voluntary association of persons formed for some common purpose, with
capital divisible into parts, known as shares and with limited liability. It exists only in the eye
of law and it may also be described as an artificial person created by law, having perpetual
succession and a common seal.
On basis of the definitions, it becomes clear that a company is an association of persons
which has a name of its own, a Joint capital and as a separate legal personality. I
Features of a company
1. Separate legal assistance
2. Limited liability
3. Transfer of shares
4. Separate property
5. Perpetual succession
6. Ownership divorced from management.
Differences between Partnership and a company
Basis of Partnership Company
Distinction
Law It is regulated by the Indian It is regulated by the Indian
Partnership Act 1932 Companies Act 1956
Number of Minimum number is two In the case of public company, the
members Maximum is 20 but in the case of a minimum number is 7 without any
banking business it is 10 maximum limit. A private company
must have atleast two members but
not more than 50
Separate A partnership does not have a The entity of Joint Stock company is
existence separate legal entity different from that of its members. It
has a separate legal existence.
Liability The liability of a partner is The liability of a member of a
unlimited. It is also joint and several company is limited to the nominal
value of the shares held by him
Management Every partner has a right to Its management is entrusted to a
participate in the management of the board of directors, elected by the
affairs of the firm shareholders.
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Transfer of A partner cannot transfer his interest The shares of a public company are
shares in the firm without the consent of all freely transferable.
other partners
Audit A partnership firm is under no Books of accounts of companies
obligation to get its annual accounts must be audited by qualified persons.
audited by qualified auditors
Book It is not compulsory to maintain any A company must maintain proper
books of account though normally books of account and other books
they are maintained required under the law, called
statutory books
Registration Law provides for registration of Every company is to be compulsorily
partnership but it is not compulsory registered either under the companies
act or under the special act which has
created it.
Duration Death, Insolvency of a partner has A company is independent of the
the effect of dissolving the lives of its members. The company
partnership continuous its affairs unaffected even
if there is a total change in its
membership
Kinds of companies
(i) Chartered companies
The earliest companies to be established in Great Britain were granted royal
charters by the King or Queen of England. The charters granted the companies
certain specified rights and privileges of trade.
(ii) Statutory companies
Such companies are established by a special Act of the Central or State
legislatures they are governed by the Special Act as well as the company law.
(iii) Registered companies
A company which is established and registered under the Companies Act 1956 or
any preceding companies act is known as a registered company. Registered
companies account for the largest number of companies in India.
(iv) Limited companies
Such companies are registered under the Companies Act and have an authorized
capital divided into a specified number of shares. The liability of each shareholder
is limited to the extent of the amount of shares held by him and on which he has
paid full amount.
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(v) Guarantee companies
Like members of a company limited by shares, the members of a company limited
by guarantee also have limited liability. But their liability is limited by the
Memorandum to the amount which they had guaranteed to pay in the event of
winding up of the company. Companies limited by guarantee are not formed for
the purpose of profit but for the promotion of Art, Science, Culture, Religion,
Charity, Literature, Sport, Commerce or for any other similar purpose. A company
limited by guarantee may also have share capital. But the amount guaranteed to be
paid by each member on its winding up is in the nature of its reserve capital.
(vi) Unlimited companies
Liability of shareholders of such companies is unlimited similar to that of partners
in a partnership organization. Such companies do not exist in India. They may or
may not have share capital.
(vii) Private companies
A private company is a company which by its articles. It restricts the right of its
members to transfer shares. It limits the numbers of its members to fifty excluding
the present and past employee members of the company and prohibits any
invitation to the public to subscribe for any shares in or debentures of the
company. A private company must use the words ‗Private Limited‘ after its name.
(viii) Public companies
Such companies are registered under the Companies Act. They invite
subscriptions from public in the form of shares and debentures which can be
freely transferred to others through an open sale at the stock exchanges. The size
of members here is not limited to fifty, through its Articles of Association.
Unlike a sole proprietorship or partnership, company accounts have a different format.
Here we have to account for the different ownership structure (shares, debentures). Company
Law also has a definite format for the final accounts of a company. Let us study company
accounts and their format.
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share capital and the contributors as shareholders. Indian Companies Act, 2013 governs all
companies and provides guidelines for them to adhere to.
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Preference Share Capital
Preference Share Capital consists of preference shares. As per Section 43(b) of the
Companies Act, 2013, preference shares are shares which carry preferential rights. The
preferential rights of preference shares are:
1. Preferential right to receive dividend: This implies that the company will first make
payment to a person holding preference shares at fixed rate or amount and then to the
equity shareholders. Thus, they receive dividend before Equity Shareholders.
2. Preferential right to repayment of capital: On the winding up of the company they receive
the repayment of capital before paying the equity shareholders.
However, a company may issue shares of an amount more than the Nominal Capital, if it
increases the Nominal Capital by altering the Capital clause in the Memorandum of Association.
Issued Capital
It is the amount of capital which a company offers to the public for subscription. Also, it
includes the shares that a company allotted to the vendors or promoters of the company for
consideration other than cash.
In the Balance Sheet, under the head Issued Capital, a company needs to state the
different classes of share capital including the sub-classes of the preference shares, the date and
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the terms of the redemption or conversion of redeemable preference shares and any option on
un-issued share capital.
Subscribed Capital
It is the amount of capital for which the company receives the subscription from the
public and makes the allotment to them. It can be equal to or less than the Issued Capital.
Called-up Capital
It is the amount which the company calls from the shareholders to pay on the shares.
Usually, a company does not call the full amount at once from the shareholders.
Hence, the portion that the company calls is called-up capital and the remaining portion
is un-called capital.
Paid-up Capital
It is the amount that is paid by the shareholders. This is the amount that we include in
the Balance Sheet total. It may be less than or equal to the paid-up capital.
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7. Redeemable Preference Shares:
These Preference Shares are redeemable by the company at a specific time (not
exceeding 20 years from the date of issue) for the repayment.
Oversubscription of shares
When a company receives applications for shares more than the number of shares it has
offered to the public, it is known as over-subscription of shares. Usually, the companies with
strong financial background or good reputation in the market or profitable future prospects
receive over-subscription of shares.According to the guidelines of SEBI, a company cannot out-
rightly reject any application. However, it can do so where the information is incomplete, the
signature is not there or the application money is insufficient.
In this case, it is not possible for the company to allot shares to every applicant in the
number that he desires. Thus, the company needs to allot the shares in a proper manner. The
company has the following three alternatives:
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Pro-rata allotment implies the allotment of shares in proportion of the shares applied for. In
the case of pro-rata allotment, the company adjusts the excess money received at the time of
application towards the allotment and refund the excess.
However, it can transfer the excess amount to Calls-in Advance A/c if its articles of
association permit and takes the consent of the applicant by a separate letter or by inserting a
clause in the Prospectus.
1. In order to issue the shares at a price less than the face value, the company has to get
permission from the relevant authority. For seeking permission, they should call and upon
a general meeting and discuss and authorize the matter in that meeting.
2. There is a cap on the rate of discount. A company cannot issue any shares at more than
10% discount.
3. The company should issue the shares within 60 days of receiving permission from the
relevant authority. In certain cases, the company can extend this time frame after getting
permission in the permission.
4. The company cannot issue these shares before passing of 1 year from the date of
commencement of business.
5. The shares must belong to the same class of shares which are already available in the
market. For example, if the has previously issued Equity shares then this time also, the
company has to issue Equity shares only.
6. Also, the company has to acquire the sanction by the Central Government after getting
approval from the general meeting.
The issue of shares at premium refers to the issue of shares at a price higher than the face
value of the share. In other words, the premium is the amount over and above the face value of a
share.
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Usually, the companies that are financially strong, well- managed and have a good
reputation in the market issue their shares at a premium. For example, if a company issues a
share of nominal or face value of ` 10 at ` 11, it issues it at 10% premium.
A company may call the amount of premium from the applicants or shareholders at any
stage, i.e. at the time of application, allotment or calls. However, a company generally calls the
amount of Premium at the time of allotment.
Also, section 52 of the Companies Act, 2013 states how a company can use the Securities
Premium. The following are the provisions regarding this:
1. The company can use the amount towards the issue of un-issued shares to the shareholders
or members of the company as fully paid bonus shares.
2. It can use this amount to write off the preliminary expenses.
3. The company may use it to pay the premium on the redemption of debentures or
redeemable preference shares.
4. It can also use this amount to write off the expenses incurred, commission paid or
discount allowed on the issue of any securities or debentures.
5. It can also use it for buy-back of own shares or any other securities.
For example, JM Ltd. offers 20000 shares to the public. It receives applications for
40000 shares. When the company decides to allot the shares at pro-rata basis, then it has to allot
20000 shares to the applicants of 40000 shares. Thus, the ratio will be 40000:20000. Hence,
each applicant for 2 shares will receive 1 share. This is Pro-rata allotment.
Journal Entries
Amount Amount
Date Particulars
(Dr.) (Cr.)
9
To Share Application A/c
(Being application money
received)
To Calls-in-advance A/c
(balance, if any)
10
To Share Capital A/c
Example
Arhan Ltd. Co. issues 100000 equity shares of face value ofRs.100 on 1st June 2018 at
20% premium. The arrangements for payment are:
June 1, 2018: On Application Rs. 20
July 1, 2018: On Allotment including Premium Rs.70
September 1, 2018: On First and final call Rs.30
The company receives applications for 285000 shares. This is a case of oversubscription. It
deals with them in the following manner:
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Journal Entries
In the books of Arhan Ltd.
Amount
Date Particulars Amount (Cr.)
(Dr.)
1 July
To Share Allotment A/c
4000000
(Being share allotment money received)
12
Share Final Call A/c Dr. 3000000
Forfeiture of Shares
Forfeiture of shares signifies cancellation of shares and the company seizes the amount
of the shares. The shareholder, who applies for the purchase of shares, makes an offer on the one
hand. On the other hand, the company by accepting or allotting shares shows acceptance. Hence,
offer and acceptance with the lawful consideration create a valid contract between the
shareholder and the company. In this article, we will look at the aspects of forfeited shares.
As we know, a company can forfeit shares on non-payment of the number of calls. The
company before forfeiture must first give clear 14 days‘ notice to the defaulting shareholder that
he shall pay the due amount along with the interest.
If not paid by the specified date, the shares shall be forfeited. If the shareholder still does not
pay, the company may forfeit the shares by passing an appropriate resolution.
1. The company debits the Share Capital Account with the amount called-up up to the date
of forfeiture on shares.
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2. It credits the Shares Allotment Amount or Shares Call Account with amount called-up on
forfeited shares but due from the shareholders. If we are maintaining Calls-in-
Arrears Account then we credit Calls-in-Arrears Account.
The company credits the Forfeited Shares Account by the receipt of the amount on the shares
forfeited.
There are instances when a member who is liable to pay any call money on his shares,
fails to pay the amount. In such cases, the directors may either by the implementation of Table A
or express provision on the articles proceed to forfeit the shares of such a defaulting member.
Before the actual forfeiture of the shares, the company may send a notice to the defaulting
member asking payment of the call.
The notice must give not less than 14 days time from the date of service of notice for the
payment of the amount of the call. The notice must also state the consequences of not fulfilling
the requirements of the notice. It generally states that if the shareholder fails to pay the amount
within a time which the notice mentions then his shares will be liable for forfeiture.
Accounting Treatment
Amount Amount
Date Particulars L.F.
(Dr.) (Cr.)
14
Journal entry for this will be:
Amount Amount
Date Particulars L.F.
(Dr.) (Cr.)
Amount Amount
Date Particulars L.F.
(Dr.) (Cr.)
L. Amount Amount
Date Particulars
F. (Dr.) (Cr.)
15
To Shares Allotment A/c XXX
Question: Give Journal entry relating to ‗Forfeiture of Shares‘ for the following:
Verma Ltd. Issues 20,000 equity shares of Rs.10 each at a premium of Rs.2 per share.
The amount is payable as Rs.4 per share on the application, Rs.5 per share as allotment, Rs.3 per
share on 1st and final call. The company allows 100 shares to Mr. Saksham. If Saksham fails to
pay allotment money and on his subsequent failure to pay the first and final call, the company
forfeits his shares.
Solution:
Amount Amount
Date Particulars
(Dr.) (Cr.)
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Calls-in-Advance
Excess Money received by the company which has been called up isknown as calls in
advance. If authorized by its Articles, A Company may accept call in advance from its
shareholders. When a company receives such an amount, it needs to credit it to the calls-in-
advance account.
Calls in Advance
The company treats calls-in-advance as a debt of until it makes the calls. The amount
already paid is adjusted. Calls-in-advance may also arise when the number of shares allotted to a
person is much smaller than the number applied by him for and the terms of issue allow the
company to retain the amount received in excess of application and allotment money.
The company can retain only such amount as is required to make the allotted shares fully
paid. After transferring the amount to the relevant call accounts, the company closes the calls-in-
advance account. It shows this amount under a separate heading, namely ‗calls-in-advance‘ on
the liabilities side. A company may pay interest on such amount received in advance at the rate
of 12% p.a. No dividend is payable on this amount. It adjusts the amount of calls-in-advance for
the payment of calls when they become due. Interest payable on Calls-in- Advance is a liability
against the profits of the company. A company has to pay Interest on Calls-in-Advance even
when there is no profit.
Journal Entries
(i) On receipt of
call money To Call-in-Advance A/c
XXXX
(Being receipt of calls in advance)
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calls
To Relevant Call A/c
XXXX
(Being transfer of the calls-in-advance)
Illustration : 1
ABC Ltd. issues 50,000 Equity Shares of 10 each payable as follows:
Application (On 1st March 2018) 4
Allotment (On 1st April 2018) 1
First Call (On 1st August 2018) 3
Final Call (On 1st October 2018) 2
It receives applications for 1,30,000 shares. Of these 5,000 shares were in disorder;
20,000 shares in lots of 100 shares; 60,000 shares in lots of exceeding 100 but less than 500
shares; 30,000 shares in lots of exceeding 500 but less than 1,000 shares and the balance in lots
of exceeding 1,000 shares.
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The allotment is as follows:
Application for the 5,000 shares in disorder is rejected.
Application for 100 shares in full, i.e. 100% 40,000
Application over 100 shares but not exceeding 500 shares – 40% 12,000
Application over 500 shares but not exceeding 1,000 shares – 15% 4,500
Applications over 1,000 shares – 10% 1,500
It retains the excess receipt of money on shares to the extent possible. Show the cash
book and journal entries assuming that the company receives all the installments duly and pays
interest on calls-in-advance @ 6.1% per annum on 1st October 2018.
Journal Entries
Amount(D Amount(C
Date Particulars
r.) r.)
19
To Calls in Advance A/c
(Being the transfer of surplus application 150000
money on 30,000 shares)
01 Aug
To Equity Share 1st Call A/c
90000
(Being calls in advance account adjusted)
20
Cash book (Bank Column)
To Equity Share
2018 By Equity Share
Application A/c 2018
1 Application A/c
(application money 520000 01 Apr 140000
Apr (refund of
@ 4 per share)
application money)
By interest on call in
advance A/c
To Equity Share
(Interest@6% on
01 Allotment A/c
20000 01 Oct 90000 for 4 3600
Apr (Balance of
month=1800 and on
allotment money)
60000 for 6
months=1800)
To Equity Share
01 1st call a/c (balance
60000 01 Oct By balance c/d 496400
Aug of share 1st call
money)
01 To Equity Share
40000
Oct Final A/c
640000 640000
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Working Notes
Statement showing the adjustment of Application Money and Calls in Advance Money
Amount due
Balance applic
Surplus transf
on application
Share allotted
Share applied
receivedon an
on allotment
Amount due
an allotment
received on
application
advance
Amount
money
to calls-in
erred
ation
Amount
1 2 3 4 5 6 7 8
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Issue of Shares for Cash
Joint stock companies carry their business on a large scale. Hence, these companies
require a huge amount of capital. They fulfill their requirement by issuing shares
and debentures to the public. Moreover, after receiving the certificate of incorporation, they can
offer shares to the public under different methods. In this article, we will discuss the issue of
share for cash.
Methods of Issue
Mostly, a company issues equity shares to the general public. When the capital raised
through ordinary shares is not enough, the company can also go for preference shares. They
can issue it either by collecting the full par value of shares at the time of issue or collecting
the face value in different calls. It includes application, allotment, first call, etc.
Par value is the value given or mentioned on the certificate of share. Each company
can mention its own par value like Rs.10, Rs.20, etc. When the company asks the total par
value of at the time of application; it is called the issue of shares on a lump sum basis.
E.g., if a share of Rs.20 is issued at Rs.20 and the whole amount is collected with the
application, it is called the issue of share at par on a lump sum basis. The following entries
are made for issuing shares.
Amount Amount
Date Particulars
(Dr.) (Cr.)
23
Share Allotment A/c (amount due on
allotment) Dr
3. Share
Allotment
To Share Capital A/c
(Being share allotment due)
When a share is issued at a price which is more than the par value, it is called the issue of
share at a premium. For example, if a share of Rs.10 is issued t Rs. 12, then it is called the issue
of share at a premium. Here Rs. 2 is the premium amount per share.
Illustration : 2
Bansal Ltd. raises capital through the issue of 10000 equity shares ofRs.100 each at 25%
premium. The amount payable is as follows:
Jan 2018: On ApplicationRs.20
Feb 2018: On AllotmentRs.75
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Mar 2018: On First and Final CallRs.30.
Show necessary journal entries of issuing shares.
Solution:
Amount Amount
Date Particulars
(Dr.) (Cr.)
Bank A/c
200000
Dr.
1
Jan To Share Application A/c
(Hence, application money received on 200000
10000 shares @20 per share)
1
Feb To Share Capital A/c
(Hence, share application money 200000
transferred to share capital)
1
Feb To Share Allotment A/c
750000
(Hence, share allotment money received)
25
1 To Share Capital A/c
(Hence, money on share call due for 300000
10000 shares @30 per share)
1
Mar 300000
To Share First and Final Call A/c
(Hence, share call received)
Illustration: 3
On 1st April 1989, ABC Ltd. Issued 1,00,000 equity shares of Rs. 10 each at Rs.12 per
share payable as to Rs.5 on application, Rs.4 on allotment and the balance on 1st July 1989.
The lists closed on 12the April 1989 by which date applications for 1,40,000 shares
had been received. Of the cash received Rs.80,000 was returned and Rs.1,20,000 was applied
to the amount due on allotment, the balance of which was paid on 19th April 1989. All
shareholders paid the call due on 1st July 1989with the exception of one allotted for 1,000
shares. Theses share was forfeited on 30th Nov 1989 and reissued as fully paid at Rs.8 per
share on 2nd January 1990. Pass journal entries in the books of ABC Ltd.
Solution:
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(Being allotment money due at Rs.4 per share Rs.2
on allotment, Rs.2 as premium on 1,00,000 shares)
19 April Bank A/c Dr. 2,80,000
To Share allotment A/c 2,80,000
(Being receipt of the balance of allotment money)
1 July Share call A/c Dr. 3,00,000
To Share Capital A/c 3,00,000
(Being call money @ Rs.3 per share due on
1,00,000 shares)
1 July Bank A/c Dr. 2,97,000
To Share Call A/c 2,97,000
(Being receipt of call money on 99,000 shares)
Illustration: 4
Sundar Ltd. Issued a prospectus, inviting applications for 2,00,000 shares of Rs. 10
each at a premium of Rs. 5 per share, payable as follows:
Application were received for 3,00,000 shares and allotment was made pro-rata to the
applications of 2,40,000 shares, the remaining applications being refused. Money received in
excess on allotment. David, to whom 4,000 shares were allotted, failed to pay allotment
money and on his failure to pay the first call, his shares were forfeited. Madan, the holder of
6,000 shares, failed to pay the two calls and so his shares were also forfeited. All these shares
were sold to Robert, credited as fully paid for Rs. 8 per share.
Pass journal entries to record the above issue of shares by the company.
Sundar Ltd.
Journal entries
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Date Particulars L.F Dr. Cr.
Bank A/c Dr. 7,50,000
To Share Applications A/c 7,50,000
(Being the receipt of application money @ Rs. 2.50 on
3,00,000 shares )
Shares applications A/c Dr. 5,00,000
To Share Capital A/c 5,00,000
(Being the transfer of shares money on 2,00,000 shares
capital A/c)
Share application A/c Dr. 2,50,000
To Share Allotment A/c 1,00,000
To Bank A/c 1,50,000
(Being the transfer of shares application money on
40,000 shares @ Rs. 2.50 to shares allotment A/c, and
the refund to application of 60,000 shares to whom no
shares were allotted)
Share allotment A/c Dr. 15,00,000
To Shares Capital A/c 5,00,000
To Securities Premium A/c 10,00,000
(Being share allotment money due)
Bank A/c Dr. 13,72,000
To Share Allotment A/c 13,72,000
(Being receipt of share allotment money)
Share First Call A/c Dr. 8,00,000
To Share Capital A/c 8,00,000
(Being first Call Money due @ Rs.4 on 2,00,000 Shares)
Bank A/c Dr. 7,60,000
To Share First Call A/c 7,60,000
(Being receipt of first call money on 1,90,000 shares)
Share capital A/c Dr. 36,000
Securities Premium A/c Dr. 20,000
To Share Allotment A/c 28,000
To Share First Call A/c 16,000
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To Forfeited Shares A/c 12,000
(Being Forfeiture of 4,000 shares held by David for non-
payment of allotment money and the first call. Share
capital debited @ RS.9 per share called up and share
premium debited @ Rs.5 per share)
Share final call A/c Dr. 1,96,000
To Share Capital A/c 1,96,000
(Being final call @ Re.1 per share due on 1,96,000
shares)
Bank A/c Dr. 1,90,000
To Share Final Call A/c 1,90,000
(Being receipt of final call money on 1,90,000 shares)
Share Capital A/c Dr. 60,000
To Share first call A/c 24,000
To Share Final Call A/c 6,000
To Forfeiture Share A/c 30,000
(Being the reissue of 6,000 shares held by Madan for
non-payment of two calls)
Bank A/c Dr. 80,000
Forfeited Shares A/c Dr. 20,000
To Shares Capital A/c 1,00,000
(Being the reissue of 10,000 shares to Robert at a
discount of Rs.2 per shares)
Forfeited Shares A/c Dr. 22,000
To Capital Reserve A/c 22,000
(Being transfer of net balance of shares forfeiture A/c to
capital reserve A/c)
Working notes:
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If allotted 4,000, Shares applied 4,800
Surplus money on application 800 x 2.50 2,000
Amount due on allotment = 4,000 x 7.50 30,000
Other Exercises
1. What is a share? List out various kinds of shares which can be issued by
companies.
4. What is meant by issue of shares at discount? Can a new company issue shares
at discount? Explain.
5. Explain the provisions of the companies act regarding the issue of shares at
premium and discount.
7. X limited forfeited 20 shares of Rs. 10 each on which Rs. 6 per share were
paid. What amount will be transferred to capital reserve if out of these 8 shares
are reissued as fully paid up on payment of Rs. 5.50 per share?
8. X Ltd forfeited 30 shares of Rs. 10 each fully called up, held by Mr. Mani for
non-payment of allotment money of Rs. 3 per share and first and final call of
Rs. 4 per share. He had paid the application money of Rs. 3 per share. These
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shares were reissued to David for Rs. 8 per share. Pass necessary journal
entries for forfeiture and reissue of shares.
10. Z limited redeemed Rs. 10,000, 12% debentures out of capital by drawing a lot
and it has also redeemed Rs. 20,000. 10% debentures out of profit by drawing
a lot. Journalize.
11. X Ltd. issued 4,000 shares of Rs. 10 each at a premium of Rs. 2 per share. The
amount was payable as under
On application Rs. 3 per share
On allotment Rs. 4 per share ( including premium)
On first call Rs. 3 per share
On second call Rs. 2 per share
The company received applications for 5,000 shares and the allotment was made as
under
(i) Applicants for 200 shares – Nil
(ii) Applicants for 800 shares –
(iii) Full
(iv) Applicants for 4,000 shares – 3,200 shares
All moneys were duly received expect the first call on 200 shares and final call on 300
shares. Pass journal entries and prepare balance sheet of X Ltd.
12. Rama Ltd. issued 50,000 shares of Rs. 100 each payable as follows:
Rs. 20 on application
Rs. 30 on allotment
Rs. 25 on first call
Rs. 25 on final call
The company received applications for 40,000 shares and all these application were
accepted. All sums due on allotment, first and final calls were received except the
final call on 400 shares. These shares were subsequently forfeited by the company and
reissued at Rs. 80 per share. Give journal entries in the books of the company.
13. A Ltd, issued 10,000 equity shares of Rs. 10 each payable as under
Rs. 2 on application
Rs. 5 on allotment
Rs. 3 on first and final call
The public applied for 8,000 shares which are allotted. All the money due on shares
was received except the first and final call on 100 shares. These shares were forfeited
and reissued at Rs. 8 per share. Show the journal entries in the book of the company
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