Issue of shares (Important Questions) : Accountancy Class 12 PDF Download

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Delhi Institute of Commerce and Economics 
1 Delhi Institute of Commerce and Economics 
 
 Issue of shares 
Test 
Time – 50 mins           M.M.- 30 
1. What is the nature of share application a/c?        1. 
 
2. Q Ltd. forfeited 300 shares on 10 each, fully called-up for non payment of Final Call money of Rs. 4 
per share. Out of these 200 shares were subsequently reissued by the company for Rs. 12 per share as fully 
paid-up. Amount of Forfeited Shares Account transferred to Capital Reserve is______________________.1. 
 
3. Bombay ltd. has a paid share capital of Rs.80 lacs and a balance of Rs.25 lacs in the security premium 
account. The management does not want to carry over the balance of security premium account. State the 
purposes for which it can be used.          1. 
 
3. Dreamers Ltd. was formed with a capital of Rs. 30,00,000 divided into shares of Rs. 10 each. 
Dreamers Ltd. issued 10,000 shares of Rs. 10 each as fully paid to the signatories to the Memorandum of 
Association and 18,000 shares on 10 each as fully paid to the vendors against the purchase of machinery and 
offered 58,500 shares of Rs. 10 each Rs. 6 called-up). All the money was duly received expect first call of Rs.2 
on 1000 shares out of which 400 were forfeited. The issue was fully subscribed. All money was duly received. 
Prepare the extract of Balance Sheet of Dreamers Ltd. Showing Share Capital.     3. 
 
4. Hive ltd. purchased a running business from five ltd. At an agreed value of Rs.6,80,000 which includes 
assets of Rs.9,00,000 and creditors of Rs.1,50,000. The amount of purchase consideration was discharged by 
issuing 5000 shares of Rs.100 each issued at a premium of 10% and remaining by means of a bank draft.  3. 
 
5. X Ltd. Issued 50,000 shares of Rs. 10 each at payable as Rs. 3 per share on application, Rs. 3 On 
allotment and Rs. 2 each on first and final call. Applications were received for 70,000 shares. It was decided:  
(a) to refuse allotment to the applicants for 10,000 shares,  
(b) to allot 20,000 shares to Mohan who has applied for similar number and (c) to allot the remaining shares 
on prorata basis.  
Mohan failed to pay the allotment money and Sohan who belonged to Category C and was allotted 3,000 
shares paid both the calls with allotment. Calculate the amount received on allotment. Journalise the above 
transactions.             3.  
 
6. X Ltd. forfeited 400 shares of Rs.25 each (Rs. 20 called-up) held by Asha, for non-payment of 
allotment money of Rs.10 per share (includingRs.5 per share premium) and the first call of Rs.6 per share. 
Out of these, 300 shares were reissued to X as Rs.20 called-up for Rs.16 per share. Give the Journal entries 
for forfeiture and reissue of shares.           4. 
 
7. X Ltd. invited application for issuing into 5,00,000 shares of Rs.10 each. The Company offered 
3,00,000 of these shares of Rs.10 each at per public, which were payable Rs.2 per share on application, Rs.3 
per share on allotment and the balance on First and Final Call. Applications for 4,60,000. shares were 
received on which the directors allotted as follows:  
Applications for 200,000 shares-Full, Applications for 2,50,000 shares-40 per cent, Applications for 10,000 
shares-Nil.  
Rs.5,40,000 was realised on account of allotment money (excluding the amount carried from Application 
Money) and Rs.12,50,000 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. Pass Journal entries in the 
company's books.            6. 
8. Agent Limited issued a prospectus inviting applications for 3,000 shares of Rs. 100 each at a premium 
of Rs.30 payable as follows: 
On Application Rs.20 per share (Including Rs. 10 as premium) 
On Allotment Rs.50 per share (Including Rs. 20 as premium) 
On First call Rs.20 per share 
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Delhi Institute of Commerce and Economics 
1 Delhi Institute of Commerce and Economics 
 
 Issue of shares 
Test 
Time – 50 mins           M.M.- 30 
1. What is the nature of share application a/c?        1. 
 
2. Q Ltd. forfeited 300 shares on 10 each, fully called-up for non payment of Final Call money of Rs. 4 
per share. Out of these 200 shares were subsequently reissued by the company for Rs. 12 per share as fully 
paid-up. Amount of Forfeited Shares Account transferred to Capital Reserve is______________________.1. 
 
3. Bombay ltd. has a paid share capital of Rs.80 lacs and a balance of Rs.25 lacs in the security premium 
account. The management does not want to carry over the balance of security premium account. State the 
purposes for which it can be used.          1. 
 
3. Dreamers Ltd. was formed with a capital of Rs. 30,00,000 divided into shares of Rs. 10 each. 
Dreamers Ltd. issued 10,000 shares of Rs. 10 each as fully paid to the signatories to the Memorandum of 
Association and 18,000 shares on 10 each as fully paid to the vendors against the purchase of machinery and 
offered 58,500 shares of Rs. 10 each Rs. 6 called-up). All the money was duly received expect first call of Rs.2 
on 1000 shares out of which 400 were forfeited. The issue was fully subscribed. All money was duly received. 
Prepare the extract of Balance Sheet of Dreamers Ltd. Showing Share Capital.     3. 
 
4. Hive ltd. purchased a running business from five ltd. At an agreed value of Rs.6,80,000 which includes 
assets of Rs.9,00,000 and creditors of Rs.1,50,000. The amount of purchase consideration was discharged by 
issuing 5000 shares of Rs.100 each issued at a premium of 10% and remaining by means of a bank draft.  3. 
 
5. X Ltd. Issued 50,000 shares of Rs. 10 each at payable as Rs. 3 per share on application, Rs. 3 On 
allotment and Rs. 2 each on first and final call. Applications were received for 70,000 shares. It was decided:  
(a) to refuse allotment to the applicants for 10,000 shares,  
(b) to allot 20,000 shares to Mohan who has applied for similar number and (c) to allot the remaining shares 
on prorata basis.  
Mohan failed to pay the allotment money and Sohan who belonged to Category C and was allotted 3,000 
shares paid both the calls with allotment. Calculate the amount received on allotment. Journalise the above 
transactions.             3.  
 
6. X Ltd. forfeited 400 shares of Rs.25 each (Rs. 20 called-up) held by Asha, for non-payment of 
allotment money of Rs.10 per share (includingRs.5 per share premium) and the first call of Rs.6 per share. 
Out of these, 300 shares were reissued to X as Rs.20 called-up for Rs.16 per share. Give the Journal entries 
for forfeiture and reissue of shares.           4. 
 
7. X Ltd. invited application for issuing into 5,00,000 shares of Rs.10 each. The Company offered 
3,00,000 of these shares of Rs.10 each at per public, which were payable Rs.2 per share on application, Rs.3 
per share on allotment and the balance on First and Final Call. Applications for 4,60,000. shares were 
received on which the directors allotted as follows:  
Applications for 200,000 shares-Full, Applications for 2,50,000 shares-40 per cent, Applications for 10,000 
shares-Nil.  
Rs.5,40,000 was realised on account of allotment money (excluding the amount carried from Application 
Money) and Rs.12,50,000 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. Pass Journal entries in the 
company's books.            6. 
8. Agent Limited issued a prospectus inviting applications for 3,000 shares of Rs. 100 each at a premium 
of Rs.30 payable as follows: 
On Application Rs.20 per share (Including Rs. 10 as premium) 
On Allotment Rs.50 per share (Including Rs. 20 as premium) 
On First call Rs.20 per share 
Delhi Institute of Commerce and Economics 
2 Delhi Institute of Commerce and Economics 
 
On Second call balance. 
Applications were received for 4,000 shares and allotments made on prorate basis to the applicants of 3,600 
shares, the remaining applications being rejected, money received on application was adjusted on account 
of sums due on allotment. Renuka whom 300 shares were allotted failed to pay allotment money and calls 
money, and her shares were forfeited. Kanika, the applicant 360 of  shares failed to pay the two calls, her 
shares were also forfeited. All these shares were sold to vinod as fully paid for Rs.90 per share. Show the 
journal entries in the books of the company         8.