Slow & Steady Ltd. invited applications for 10,000 Equity Shares of Rs. 10 each for public subscription. The amount of these shares was payable as: On application Rs. 1 per share, on allotment Rs. 2 per share, on first call Rs. 3 per share and on second and final call Rs. 4 per share. All sums payable on application, allotment and call were duly received with the following exceptions: (i) A, who held 200 shares, failed to pay the money on allotment and calls. (ii) B, to whom 150 shares were allotted , failed to pay the money on first call and final call. (iii) C, who held 50 shares, did not pay the amount of second and final call. The shares of A , B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%. Pass necessary Journal entries to record these transactions in the books of X Ltd.

Slow & Steady Ltd. invited applications for 10,000 Equity Shares of Rs

1.	Slow & Steady Ltd. invited applications for 10,000 Equity Shares of Rs. 10 each for public subscription. The amount of these shares was payable as: On application Rs. 1 per share, on allotment Rs. 2 per share, on first call Rs. 3 per share and on second and final call Rs. 4 per share. All sums payable on application, allotment and call were duly received with the following exceptions: (i) A, who held 200 shares, failed to pay the money on allotment and calls. (ii) B, to whom 150 shares were allotted , failed to pay the money on first call and final call. (iii) C, who held 50 shares, did not pay the amount of second and final call. The shares of A , B and C were forfeited and were subsequently reissued for cash as fully paid-up at a discount of 5%. Pass necessary Journal entries to record these transactions in the books of X Ltd.
Answer» Correct Answer - Capital Reserve-Rs. 750.

Discussion

No Comment Found

Related InterviewSolutions

Rajan Ltd. purchased assets from Geeta & Co. for Rs. 5,00,000 . A sum of Rs. 1,00,000 was paid by means of a bank draft and for the balance due Rajan Ltd. Issued Equity Shares of Rs. 10 each at a premium of 25%. ltbr. Journalise the above transactions in the books of the company.
Z Ltd. purchased furniture costing Rs. 2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of Rs. 100 each at a premium of Rs. 10 per share. Pass necessary Journal entries in the books of Z Ltd.
State the name of capital which refers to that amount which is stated in the Memorandum of Association as the share capital of the company.
State any one purpose for which Securities Premium Reserve Account can be utilised.
what is meant by public subscription of shares?
Zee Ltd. intends to issue 10,00,000 Equity Shares of Rs. 10 each to public for subscription. The management was suggested by the accountant Rahul that shares should be issued at 10% discount so that shares are subscribed in full. The management did not accept the suggestion of Rahul. What must be the reason for not accepting the suggestion?
Give the meaning of Call-in-Arrears.
Exe Ltd. has Rs. 10,000 debit balance in Calls-in-Arrears Account and also Rs. 10,000 credit balance in Calls-in-Advance Account. The Accountant did not show both the accounts in Balance Sheet adjusting the two accounts against each other. Is the approach correct? Give your reasons.
The Director of a company foreited 300 shares of Rs. 10 each issued at a premium of Rs. 3 per share, for the non-payment of the first call money of Rs. 2 per share. The final call of Rs. 2 per share has not been made. Half the forfeited shares were reissued at Rs. 1,500 as fully paid-up. Record the Journal entries for the forfeiture and reissue of shares.
How is Call-in-Arrears shown in the Balance Sheet?

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment