Test: Accounting for Share Capital- Case Based Type Questions - Commerce MCQ

Based on the information below, you are required to answer the following questions:

Nidiya Limited was incorporated on 1st April 2017 with a registered office in Mumbai. The capital clause of the memorandum of Association reflected a registered capital of 8,00,000 equity shares of ₹10 each and 1,00,000 preference shares of ₹50 each.

Since some large investments were required for building and machinery the company in consultation with vendors, M/s VPS Enterprises, issued 1,00,000 equity shares and 20,000 preference shares at par to them in full consideration of assets acquired. Besides this the company issued 2,00,000 equity shares for cash at par payable as ₹ 3 on application, 2 on allotment, 3 on first call and 2 on second call.

Till date the second call has not yet been made and all the shareholders have paid except Mr. Ajay who did not pay allotment and calls on his 300 shares and Mr. Vipul who did not pay the first call on his 200 shares. Shares of Mr. Ajay was then forfeited and out of them 100 shares were reissued at ₹12 per share.

How many equity shares of the company have been subscribed?

Based on the information below you are required to answer the following questions:

Sangita Limited invited applications for issuing 60,000 shares of ₹10 each at par. The amount was payable as follows : On Application ₹ 2 per share On Allotment ₹ 3 per share One First and Final Call ₹ 5 per share Applications were received for 92,000 shares. Allotment was made on the following basis :

(i) To applicants for 40,000 shares — Full

(ii) To applicants for 50,000 shares — 40%

(iii) To applicants for 2,000 shares — Nil

₹1,08,000 was released on account of allotment (excluding the amount carried from application money) and ₹2,50,000 on account of call.

The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.

The above case shows which of the following cases of subscription?

Based on below information you are required to answer the following questions:

The directors of Bhagat and Company Ltd. issued 50,000 equity shares of ₹10 each at ₹ 12 per share, payable as ₹ 5 on application including the premium, ₹ 4 on allotment and the balance on final call. Applications were received for 70,000 shares out of which applications for 8,000 shares were rejected and their money was refunded. Money overpaid on application was applied towards sums due on allotment. All the money were duly received except from one shareholder holding 500 shares who failed to pay the final call money.

What is the amount received on application of shares?

Based on the information below, you are required to answer the following questions:

Nidiya Limited was incorporated on 1st April 2017 with a registered office in Mumbai. The capital clause of the memorandum of Association reflected a registered capital of 8,00,000 equity shares of ₹10 each and 1,00,000 preference shares of ₹50 each.

Since some large investments were required for building and machinery the company in consultation with vendors, M/s VPS Enterprises, issued 1,00,000 equity shares and 20,000 preference shares at par to them in full consideration of assets acquired. Besides this the company issued 2,00,000 equity shares for cash at par payable as ₹ 3 on application, 2 on allotment, 3 on first call and 2 on second call.

Till date the second call has not yet been made and all the shareholders have paid except Mr. Ajay who did not pay allotment and calls on his 300 shares and Mr. Vipul who did not pay the first call on his 200 shares. Shares of Mr. Ajay was then forfeited and out of them 100 shares were reissued at ₹12 per share.

Shares issue to vendors of building and machinery, Ms. VPS Enterprises, would be classified as:

Based on the information below you are required to answer the following questions:

Sangita Limited invited applications for issuing 60,000 shares of ₹10 each at par. The amount was payable as follows : On Application ₹ 2 per share On Allotment ₹ 3 per share One First and Final Call ₹ 5 per share Applications were received for 92,000 shares. Allotment was made on the following basis :

(i) To applicants for 40,000 shares — Full

(ii) To applicants for 50,000 shares — 40%

(iii) To applicants for 2,000 shares — Nil

₹1,08,000 was released on account of allotment (excluding the amount carried from application money) and ₹2,50,000 on account of call.

The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.

How many shares will be issued for the applicants of 50,000 shares?

Based on below information you are required to answer the following questions:

The directors of Bhagat and Company Ltd. issued 50,000 equity shares of ₹10 each at ₹ 12 per share, payable as ₹ 5 on application including the premium, ₹ 4 on allotment and the balance on final call. Applications were received for 70,000 shares out of which applications for 8,000 shares were rejected and their money was refunded. Money overpaid on application was applied towards sums due on allotment. All the money were duly received except from one shareholder holding 500 shares who failed to pay the final call money.

What is the amount received on application of shares?

What is the amount that will be transferred to the securities premium account?

Based on the information below, you are required to answer the following questions:

Nidiya Limited was incorporated on 1st April 2017 with a registered office in Mumbai. The capital clause of the memorandum of Association reflected a registered capital of 8,00,000 equity shares of ₹10 each and 1,00,000 preference shares of ₹50 each.

Since some large investments were required for building and machinery the company in consultation with vendors, M/s VPS Enterprises, issued 1,00,000 equity shares and 20,000 preference shares at par to them in full consideration of assets acquired. Besides this the company issued 2,00,000 equity shares for cash at par payable as ₹ 3 on application, 2 on allotment, 3 on first call and 2 on second call.

Till date the second call has not yet been made and all the shareholders have paid except Mr. Ajay who did not pay allotment and calls on his 300 shares and Mr. Vipul who did not pay the first call on his 200 shares. Shares of Mr. Ajay was then forfeited and out of them 100 shares were reissued at ₹12 per share.

What is the amount of security premium reflected in the balance sheet at the end of the year?

Based on the information below you are required to answer the following questions:

Sangita Limited invited applications for issuing 60,000 shares of ₹10 each at par. The amount was payable as follows : On Application ₹ 2 per share On Allotment ₹ 3 per share One First and Final Call ₹ 5 per share Applications were received for 92,000 shares. Allotment was made on the following basis :

(i) To applicants for 40,000 shares — Full

(ii) To applicants for 50,000 shares — 40%

(iii) To applicants for 2,000 shares — Nil

₹1,08,000 was released on account of allotment (excluding the amount carried from application money) and ₹2,50,000 on account of call.

The directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.

How much allotment amount is already received during application?

Based on below information you are required to answer the following questions:

The directors of Bhagat and Company Ltd. issued 50,000 equity shares of ₹10 each at ₹ 12 per share, payable as ₹ 5 on application including the premium, ₹ 4 on allotment and the balance on final call. Applications were received for 70,000 shares out of which applications for 8,000 shares were rejected and their money was refunded. Money overpaid on application was applied towards sums due on allotment. All the money were duly received except from one shareholder holding 500 shares who failed to pay the final call money.

What is the amount received on application of shares?

How much money is still not paid up on the allotted shares?