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X Ltd.was registered with a capital of rs10,00,000 divided by equity share of 10,000.The company issued 6000 of auch shares and payable as follows: on application rs30 per share. on allotment rs50(including premium of rs20 each). on 1st and final call rs40 each. 10000 shares were subscribed for and company decided to reject 2000 shares and remaining shares were issued pro-rata basis.?
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X Ltd.was registered with a capital of rs10,00,000 divided by equity s...
Explanation of X Ltd. Share Issue and Rejection



  • Registered Capital: X Ltd. was registered with a capital of Rs. 10,00,000 divided by equity share of 10,000.

  • Shares Issued: The company issued 6000 such shares.

  • Payment Schedule: The payment schedule for these shares was as follows:


    • On Application: Rs. 30 per share.

    • On Allotment: Rs. 50 (including premium of Rs. 20 each).

    • On 1st and Final Call: Rs. 40 each.


  • Subscribed Shares: 10000 shares were subscribed for.

  • Rejection of Shares: The company decided to reject 2000 shares.

  • Remaining Shares: The remaining shares were issued pro-rata basis.



Pro-rata Basis


When shares are issued on a pro-rata basis, it means that they are issued in proportion to the number of shares that each shareholder currently holds. For example, if a shareholder holds 1000 shares and the company decides to issue more shares on a pro-rata basis, then that shareholder will have the right to buy 10% of the new shares being issued (assuming that the total number of new shares being issued is equal to the number of existing shares).

Conclusion


In the case of X Ltd., 10000 shares were subscribed for and the company decided to reject 2000 shares. This means that only 8000 shares were allocated. The remaining 2000 shares were then issued on a pro-rata basis to the existing shareholders. If a shareholder held 1000 shares, they could purchase an additional 250 shares (which is 12.5% of the new shares being issued). The rejection of shares and issuance on a pro-rata basis is a common practice in corporate finance to ensure that the company raises the required capital while maintaining control over its ownership structure.
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Amar limited issued 20,000 Equity shares of, 10 each at a premium of 10% ,payable ₹2 on application, ₹4 on allotment ( including premium) ,₹2 on final call and balance on the final call . All the shares were fully subscribed. Mr. M who held 2000 shares paid full remaining amount on first call itself . The final call which was Made after 4 months from first call was fully paid except a shareholder having 200 shares and one another holding 100 shares . They paid their due amount after 3 months and 4 months respectively along with interest on calls in arrears , Company also paid interest on calls in advance to Mr. M .The Company also paid interest on calls in advance to Mr. M .The Company maintains Calls in arrears and Calls in advance A/c .Give journal entries to record these transactions .Show working of interest calculation.?

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X Ltd.was registered with a capital of rs10,00,000 divided by equity share of 10,000.The company issued 6000 of auch shares and payable as follows: on application rs30 per share. on allotment rs50(including premium of rs20 each). on 1st and final call rs40 each. 10000 shares were subscribed for and company decided to reject 2000 shares and remaining shares were issued pro-rata basis.?
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X Ltd.was registered with a capital of rs10,00,000 divided by equity share of 10,000.The company issued 6000 of auch shares and payable as follows: on application rs30 per share. on allotment rs50(including premium of rs20 each). on 1st and final call rs40 each. 10000 shares were subscribed for and company decided to reject 2000 shares and remaining shares were issued pro-rata basis.? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X Ltd.was registered with a capital of rs10,00,000 divided by equity share of 10,000.The company issued 6000 of auch shares and payable as follows: on application rs30 per share. on allotment rs50(including premium of rs20 each). on 1st and final call rs40 each. 10000 shares were subscribed for and company decided to reject 2000 shares and remaining shares were issued pro-rata basis.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X Ltd.was registered with a capital of rs10,00,000 divided by equity share of 10,000.The company issued 6000 of auch shares and payable as follows: on application rs30 per share. on allotment rs50(including premium of rs20 each). on 1st and final call rs40 each. 10000 shares were subscribed for and company decided to reject 2000 shares and remaining shares were issued pro-rata basis.?.
Solutions for X Ltd.was registered with a capital of rs10,00,000 divided by equity share of 10,000.The company issued 6000 of auch shares and payable as follows: on application rs30 per share. on allotment rs50(including premium of rs20 each). on 1st and final call rs40 each. 10000 shares were subscribed for and company decided to reject 2000 shares and remaining shares were issued pro-rata basis.? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
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