Accountancy Case Study

You are required to answer the following questions:
1.

Gagan Ltd. invited applications for 1,00,000 Equity Shares @ 10 each at a premium of 40%. Payable as: Application Rs.4 along with full premium; Allotment Rs.4 and balance on First & Final call.

Applications were received and shares were allotted as follows:

Category 1 Applied for 10000 Shares Full Allotment Category 2 Applied for 70000 Shares 50000 Allotted Category 3 Applied for 50000 Shares 40000 Allotted

Excess money was to be adjusted on allotment.

One shareholder Yash belongs to Category-2 to whom 1500 shares were allotted failed to pay allotment and final call.

One shareholder Ankush from Category-3 applied for 1000 shares did not pay the call amount.

Shares of both Yash and Ankush were forfeited after the call. Out of the forfeited shares 1500 were reissued (including 75% shares of Ankush) at a discount of 50% from the permissible amount.

How much application money received?

(A) 10,00,000
(B) 10,10,000
(C) 10,20,000
(D) 10,40,000
2. How much excess amount is adjusted towards allotment?
(A) 2,10,000
(B) 2,20,000
(C) 2,30,000
(D) 2,40,000
3. Amount credited to Securities Premium Reserve at the time of application money adjustment:
(A) 4,00,000
(B) 5,20,000
(C) 8,00,000
(D) 4,80,000
4. Amount received on allotment:
(A) 1,60,000
(B) 1,58,800
(C) 4,00,000
(D) 2,00,000
5. Shares Applied by Yash:
(A) 2100
(B) 1800
(C) 2000
(D) 1500
6. Amount not received on First and Final Call:
(A) 5,000
(B) 4,500
(C) 4,600
(D) 4,000
7. Total amount of share forfeiture (at the time of forfeiture) while passing entry for forfeiture:
(A) 18,800
(B) 16,800
(C) 24,800
(D) 17,200
8. Amount transferred to Capital Reserve:
(A) 5,640
(B) 6,000
(C) 7,200
(D) 5,500

You are required to Answer the following question
1.

Vinod Ltd. issued 10,000 Equity Shares of Rs.10 each at a premium of Rs.3 per share payable as:

On Application.........................................................Rs.4

On Allotment............................................................Rs.5 (including premium)

On First Call.............................................................Rs.2

Balance................................................................... as and when required.

The public applied for 12,000 shares. The company made pro-rata allotment to all the applicants. One shareholder who was allotted 900 shares paid the entire amount with allotment while another shareholder who had applied for.

1200 shares, failed to pay the allotment money and on his subsequent failure to pay the first call his shares were forfeited.

Of the forfeited shares, 800 were reissued at Rs.7 per share.

Balance of Share Allotment Account will be:

(A) 39,600
(B) 50,000
(C) 12,200
(D) Nil
2. Balance of Securities Premium Reserve Account will be:
(A) 27,000
(B) 28,000
(C) 30,000
(D) 29,000
3. Balance of Share Forfeiture Account will be:
(A) 3,800
(B) 960
(C) 3,000
(D) 800
4. Balance of Calls-in-Arrears Account:
(A) 6,200
(B) Nil
(C) 4,200
(D) 2,000

You are required to answer the following questions
1.

M Ltd. offered 1,05,000 equity shares of Rs.10 each payable as:

Rs.3 on application; Rs.4 on allotment and Balance on 1st & final call.

Applications were received in excess and allotment was made as follows:

(a) Applicants of 30,000 shares..................................................Nil

(b) Applicants of 12,000 shares..................................................Full Allotment

(c) Applicants of 9,000 shares....................................................Allotted 6,000 Shares

(d) Applicants of 60,000 shares..................................................Allotted 15,000 Shares

(e) Applicants of 90,000 shares..................................................Allotted 18,000 Shares

(f) Applicants of 1,50,000 shares ...............................................Allotted 24,000 Shares

(g) Applicants of 1,80,000 shares ..............................................Allotted 30,000 Shares

Excess application money received on application was adjusted towards allotment and call.

Application money received by the company:.

(A) 15,93,000
(B) 16,00,000
(C) 15,00,000
(D) 16,93,000
2. Amount refunded by the company:
(A) 90,000
(B) 5,00,000
(C) 6,60,000
(D) 4,60,000
3. Excess amount adjusted towards allotment:
(A) 3,55,000
(B) 3,56,000
(C) 3,58,000
(D) 3,57,000
4. Excess amount adjusted on Call:
(A) 2,60,000
(B) 2,61,000
(C) 2,62,000
(D) 2,63,000

You are required to answer the following questions

Vinod Ltd. issued 20,000 Equity Shares of Rs.10 each at a premium of 20% payable as:

On Application Rs.3 per share On Allotment Rs.3 per share along with premium On First Call Rs.2 per share On Second & Final Call Balance

Company passed a special resolution that second & final call will not be called except in the case of winding up.

It will be considered as Reserve Capital.

Applications were received or 30,000 shares and allotment was made as follows:

Category A Applied for 15000 Allotted 12500 Category B Applied for 10000 Allotted 5500 Category C Applied for 5000 Allotted 2000

Excess money is to be utilized on allotment.

Mr. White (Category A) who applied for 300 shares did not pay allotment and his shares were forfeited immediately after allotment.

Mr. Black (Category C) who applied for 500 shares did not pay allotment and first call and his shares were forfeited after the first call.

Out of the forfeited shares 400 were reissued (including all shares of Mr. White) to Mr. Red @ 10 each. Opening of Calls in arrears account is mandatory.                                                                                           V.V.IMP

Excess money adjusted towards allotment:

(A) 30,000
(B) 40,000
(C) 50,000
(D) 60,000
2. Total amount not paid on allotment by Mr. White:
(A) 900
(B) 1,000
(C) 1,100
(D) 1,200
3. Total amount not paid on allotment by Mr. Black:
(A) 100
(B) 200
(C) 300
(D) 900
4. Allotment money received by the company:
(A) 65,000
(B) 66,000
(C) 67,000
(D) 68,000
5. At the time of Forfeiture of 250 Shares, Share Forfeiture Account is to be credited by:
(A) 600
(B) 1,600
(C) 500
(D) 900
6. At the time of Forfeiture of 200 Shares, Share Forfeiture Account is to be credited by:
(A) 100
(B) 600
(C) 1200
(D) 400
7. Amount to be transferred to Capital Reserve:
(A) 1,600
(B) 1,700
(C) 1,800
(D) 1,900
8. Balance of Calls in Arrears Account:
(A) 1,600
(B) Nil
(C) 1,400
(D) 400

Jewels Ltd. was registered with an authorized capital of ₹10,00,000 divided into shares of ₹20 each. It offered 40,000 shares to the public for subscription at a premium of ₹10 per share. Applications were received for 37,000 shares and allotment was made to all applicants.
Amounts were payable as follows:
On Application - ₹6
On Application - ₹15 (incl. premium)
On Ist call - ₹5
On IInd & final call - Balance
It forfeited 3000 shares of ₹20 each (₹16 called up) held by Mansi, for non- payment of allotment and the first call. Out of these 2,000 shares were reissued to Sudha as ₹16 called up for ₹14 per share.
1. Amount transferred to capital Reserve will be:
(a) ₹18000
(b) ₹8000
(c) ₹14000
(d) Nil
2. Balance of forfeited shares account will be:
(a) ₹18000
(b) ₹10000
(c) ₹6000
(d) ₹14000
3. Subscribed and Fully paid capital will be:
(a) ₹7,40.000
(b) ₹5,76,000
(c) ₹5,82,000
(d) Nil
4. Subscribed but not fully paid capital will be:
(a) ₹5,82,000
(b) ₹5,76,000
(c) ₹7,26,000
(d) ₹7,20,000

Joy Ltd. was registered with an authorized capital of ₹6,00,000 divided into shares of ₹10 each. 18,000 shares were issued as fully paid up to the vendor for the purchase of building 24000 shares were subscribed for by the public ₹5 per share were called up, payable ₹2 on application, ₹1 on allotment, ₹1 on first call and ₹1 on second call. The amount received in respect of these share were as follows:
On 18000 shares - The full amount called
On 3750 shares - ₹ 4 per share
On 1500 shares - ₹ 3 per share
On 750 shares - ₹ 2 per share
1. What is the total Subscribed Capital of Joy Ltd?
(a) ₹1,80,000
(b) ₹4.20,000
(c) ₹2,91,000
(d) ₹2,40,000
2. How much amount received on allotment of shares?
(a) ₹23,750
(b) ₹22,000
(c) ₹23,250
(d) ₹24,000

Kairav Ltd. issued 4000 equity shares of ₹10 each at par payable as under:
On application ₹3;
On allotment ₹2:
On first call ₹4; and
On final call 1 per share
Applications were received for 13,000 shares. Application for 5,000 shares were rejected and pro-rata allotment was made to the application for 8,000 shares. Excess application money is adjusted towards the amount due on alotment and calls. Raman, a shareholder, could not pay the final call on 300 shares. And these shares were forfeited subsequently. These shares were resissued at 11 per share.
On the basis of above information you are required to answer the following questions-
1. How much amount will be received in cash on the first call?
(a) ₹8,000
(b) ₹16,000
(c) Nil
(d) ₹12,000
2. What is the amount to be transferred to the capital reserve?
(a) ₹3,000
(b) ₹2,700
(c) Nil
(d) ₹300

Kusum Ltd. offered 22,000 equity shares of ₹100 each to the public at a premium of ₹20 per share. The amount per share was payable as ₹30 on application; ₹50 (including premium) on allotment ; and the balance on first and final call. 20,000 shares were subscribed by the public. All calls were made. A sharesholder holding 1,000 shares failed to pay the first and final call money. His shares were forfeited.
1. Subscribed capital will be:
(a) ₹19,00,000
(b) ₹20,60,000
(c) ₹20,00,000
(d) ₹19,60,000
2. Balance of securities Premium Reserve shown in balance sheet will be-
(a) ₹4,00,000
(b) ₹4,40,000
(c) ₹3,80,000
(d) ₹4,20,000
3. Amount of forfeited shares shown in balance sheet will be-
(a) ₹1,20,000
(b) ₹80,000
(c) ₹60,000
(d) ₹1,60,000
4. Issued Capital will be-
(a) ₹24,00,000
(b) ₹19,60,000
(c) 22,00,000
(d) ₹20,00,000