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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:
  • a)
    Preferential Allotment
  • b)
    Employee Stock Option Plan
  • c)
    Issue for consideration other than cash
  • d)
    Right Issue of Shares
Correct answer is option 'C'. Can you explain this answer?
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Based on the information below, you are required to answer the follow...
When an asset is acquired by a company, the payment of asset price can be made by the issue of shares or in cash to the vendor. As the term clear itself, issue of shares for consideration other than cash means shares of the company are issued to somebody for anything which is not cash.
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Based on the information below, you are required to answer the follow...
Classification of Shares issued to Vendors:
Shares issued to vendors of building and machinery, M/s VPS Enterprises, would be classified as:

Issue for consideration other than cash:
- The shares issued to M/s VPS Enterprises were in full consideration of assets acquired, not for cash.
- This type of share issue is classified as an 'Issue for consideration other than cash.'
- It is a common practice to issue shares in exchange for assets or services provided by vendors.

Characteristics of Issue for consideration other than cash:
- Shares are issued in exchange for non-monetary consideration like assets, services, or other non-cash transactions.
- The value of the shares issued is determined based on the fair value of the assets or services received.
- Such transactions need to be properly recorded and disclosed in the financial statements of the company.

Importance of proper classification:
- Proper classification of share issues is essential for accurate financial reporting and transparency.
- It ensures that the company's financial statements reflect the true nature of transactions and comply with accounting standards.
Therefore, the shares issued to M/s VPS Enterprises for building and machinery would be classified as an 'Issue for consideration other than cash.'
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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 amount of share forfeiture would be reflected in the balance sheet?

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: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?

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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:a)Preferential Allotmentb)Employee Stock Option Planc)Issue for consideration other than cashd)Right Issue of SharesCorrect answer is option 'C'. Can you explain this answer?
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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:a)Preferential Allotmentb)Employee Stock Option Planc)Issue for consideration other than cashd)Right Issue of SharesCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about 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:a)Preferential Allotmentb)Employee Stock Option Planc)Issue for consideration other than cashd)Right Issue of SharesCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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:a)Preferential Allotmentb)Employee Stock Option Planc)Issue for consideration other than cashd)Right Issue of SharesCorrect answer is option 'C'. Can you explain this answer?.
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Here you can find the meaning of 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:a)Preferential Allotmentb)Employee Stock Option Planc)Issue for consideration other than cashd)Right Issue of SharesCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of 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:a)Preferential Allotmentb)Employee Stock Option Planc)Issue for consideration other than cashd)Right Issue of SharesCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for 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:a)Preferential Allotmentb)Employee Stock Option Planc)Issue for consideration other than cashd)Right Issue of SharesCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of 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:a)Preferential Allotmentb)Employee Stock Option Planc)Issue for consideration other than cashd)Right Issue of SharesCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice 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:a)Preferential Allotmentb)Employee Stock Option Planc)Issue for consideration other than cashd)Right Issue of SharesCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
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