Company Accounts Issue Of Shares CBSE Questions & Answers

When a company purchase any fixed asset or business and makes the payment to the vendor in form of issue of shares in place of cash it is called

Private placement of shares

Private placement of shares governed by SEBI guidelines and requires ____ resolution to be passed in General Body meeting

In case of Oversubscription of application what is to be done by the company

The existing share holders have a right or fresh capital of shares of company for consideration decided by the company in proportion to existing shareholdings is called

Companies offer Employees Stock Purchase Plans to employees to allow them the opportunity to share the success of the firm

T Ltd. was formed with a nominal Share Capital of Rs.4000000 divided into Rs.400,000 shares of Rs.10 each. The Company offers 130000 shares to the public payable Rs.3 per share on Application, Rs.3 per share on Allotment and the balance on First and Final Call. Applications were received for 120000 shares. All money payable on allotment was duly received, except on 200 shares held by Y. First and Final Call was not made by the Company. Call in arrears will be of

ABC Ltd. Issued 40000 shares of Rs.10 each at a discount of 10 percent. Payments were to be made as—on Application Rs.3; on Allotment Rs.4 and on First and Final Rs.2. Applications was received for 36000 shares and all were accepted. All money was duly received. Amount due on Share first and final call

AB Ltd. Issued 40,000 shares of Rs.10 each at a discount of 10%. Payments were to be made as—on Application Rs.3; on Allotment Rs.4 and on First and Final Call Rs. 2. Applications was received for 36000 shares and all were accepted. All money was duly received. Amount due on allotment, excluding discount

PQR Entertainment Ltd. invited applications for 100000 shares of Rs.10 each at a discount of 6 percent payable as follows: On Application Rs. 3, On Allotment Rs.2.40, On First and Final Call Rs.4. The applications were received for 90000 shares and all of these were accepted. All money due were received except the first and final call on 2000 shares which were forfeited. 1000 shares were re-issued at Rs.9 per share as fully paid. Assuming that all requirements of law were complied with, pass Entries in the Journal of the company. Also show how these transactions will be reflected in the company’s Balance Sheet. Application money received

PQR Entertainment Ltd. invited applications for 100000 shares of Rs.10 each at a discount of 6 percent payable as follows: On Application Rs. 3, On Allotment Rs.2.40, On First and Final Call Rs.4. The applications were received for 90000 shares and all of these were accepted. All money due were received except the first and final call on 2000 shares which were forfeited. 1000 shares were re-issued at Rs.9 per share as fully paid. Assuming that all requirements of law were complied with, pass Entries in the Journal of the company. Also show how these transactions will be reflected in the company’s Balance Sheet. Share discount amount :

PQR Entertainment Ltd. invited applications for 100000 shares of Rs.10 each at a discount of 6 percent payable as follows: On Application Rs. 3, On Allotment Rs.2.40, On First and Final Call Rs.4. The applications were received for 90000 shares and all of these were accepted. All money due were received except the first and final call on 2000 shares which were forfeited. 1000 shares were re-issued at Rs.9 per share as fully paid. Assuming that all requirements of law were complied with, pass Entries in the Journal of the company. Also show how these transactions will be reflected in the company’s Balance Sheet. Share first and final call received on 88000 shares

X Ltd. invited application for 10000 shares of the value of Rs.10 each. The amount is payable as Rs.2 on application and Rs.2 on allotment and balance on First and Final call. The whole of the above issue was applied and cash duly received. Journal entry for the application money received

X Ltd. invited application for 10,000 shares of the value of Rs.10 each. The amount is payable as Rs. 2 on application and Rs. 5 on allotment and balance on First and Final call. The whole of the above issue was applied and cash duly received. Journal entry for the transfer of application money on 10000 shares to share capital account

V Ltd. Issued 20000 Equity shares of Rs.10 each at a premium of Rs. 3 payable as follows On Application Rs. 4 On Allotment Rs. 5 (including) On Application Rs. 2 On Application Rs. 2 All shares were duly subscribed and all money duly received. Journal entry for the amount due on allotment