Calls in arrear:
1. X Ltd. issued 40,000, 9% Preference shares of 100 each at a premium of 10%. Payments were to be made as – Rs. 25 on Application; Rs. 45 on Allotment (including premium), Rs. 10 on First call and balance on Final Call. The applications for 38,000 shares were received and all were accepted. All the money was duly received except the first and final call on 200 shares. Give the necessary Journal Entries and prepare Cash Book of the Company.
2. Yoyo company issued 40,000 equity shares of no each at par payable as under: on application Rs. 2; on allotment 1; on first call Rs. 3 and on final call 4 per share, 4 months after first call). Amount due on application and allotment was duly received. One shareholder GOGO 2,000 shares could not pay the first call Another shareholder JOJO 1,000 shares had paid only the application money in time. All the arrears were also received at the time of final call. Journalize.
3. Styen Limited invited applications for 70,000 shares of Rs. 1O each payable as follows: Rs. 2.50 on Application, Rs. 2.50 on Allotment, Rs. 2 on First Call, Rs. 3 on Second Call.
A holder of 500 share had paid only the application money.
B holder of 1500 share had paid only the allotment money.
C holder of 2500 share had paid only the first call.
Applications were received for 67,500 shares. Pass journal entries and prepare Cash Book.
4. The Kalyan Cotton Mills Ltd. was registered on 1st January, 2011 with a capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each. The company issued 42,000 shares of which 40,000 shares were taken up by the public and Rs. 1 per share was received with application. On 1 st February, these shares were allotted and Rs. 2 per share was duly received on 28th February as allotment money. A first call on 3 per share was made on 1 st March and the call money on all shares with the exception of 100 shares was received. The final call of Rs. 4 per share was made on 1 st June and the amount due, with the exception of 400 shares, was received by 30th June. Pass necessary Journal and Cash Book entries.
5. XYZ Ltd. issued 8,000 Equity Shares of Rs. 10 each. Rs. 5 per share was called, payable Rs. 2 on application, Rs. 1 on allotment, Rs. 1 on first call and Rs. 1 on second call. All the money was duly received with the following exceptions:
A who holds 250 shares paid only Rs. 2.
B who holds 500 paid only Rs. 3.
C who holds 1000 shares paid only Rs. 4. journalize.
6. Unique Pictures Ltd. was registered with an authorised capital of Rs. 5,00,000 divided into 20,000, 5% preference shares of Rs. 10 each and 30,000 equity shares of Rs. 10 each. The company issued 10,000 preference and 15,000 equity shares for public subscription. Calls on shares were made as under:
Equity Shares Preference Shares
Application 2 2
Allotment 3 3
First Call 2.50 2.50
Second and Final Call 2.50 2.50
All these shares were fully subscribed. All the dues were received except the second and final call on 100 equity shares and on 200 preference shares. Prepare cash book and journal.
7. A company issued 20,000 equity shares of Rs. 10 each at a premium of 20% in favour of a purchase consideration and 30,000 preference shares at Rs. 10 payable at Rs. 3 on application, Rs. 3 on allotment, Rs. 2 on first call and Rs.2 on second and the final call. The allotment money was payable on or before May 01, 2005; first call money on or before August Ist, 2005; and the second and final call on or before October Ist, 2005; ‘X’, whom 1,000 shares were allotted, did not pay the allotment and call money; ‘Y’, an allottee of Rs. 600 shares, did not pay the two calls; and ‘Z’, whom 400 shares were allotted, did not pay the final call.
Pass journal entries and prepare the cash book.
8. Ghosh Ltd. made the second and final call on its 50,000 Equity Shares @ Rs. 2 per share on 1 st January, 2012. The whole amount was received on 15th January, 2012 except on 100 shares allotted to Venkat. Pass necessary Journal entries for the call money.
Calls in advance:
9. B Ltd. issued 30,000 shares of Rs. 10 each payable as follows:
Rs. 2.50 on Application payable on 1st May, 2005
Rs. 2.50 on Allotment payable on 1st July, 2005
Rs. 2.00 on First Call payable on 1st Oct., 2005
Rs. 2.00 on Second Call payable on 1st Feb., 2006
All these shares were subscribed and amounts received. Mohani who had 1000 shares, paid the amount of first and second calls with allotment. Pass Journal entries in the books of the Company.
10. Sumit Machine Ltd issued 50,000 shares of Rs.100 each atpremium of 5%.The shares were payable Rs. 25 on application, Rs. 40 on allotment and Rs. 10on first and balance on final call. The issue were fully subscribed but HEHE holding 600 shares paid entire balance with allotment and CHI CHI with 400 shares paid with the first call. The premium was adjusted on allotment. Give journal entries.
11. On 1.1.2005 X Ltd. received in advance the first call of Rs. 4 per share on 10,000 equity shares. The first call was due on 15-2-2005. Journalise the above transactions.
12. On 1st February 2009, Raju Ltd. received in advance the first call of Rs. 35 per share on 500 equity shares. The first call was due on 31 st March 2009. Journalise the above transactions.
Calls in advance and arrear:
13. C Ltd. issued 15,000 Preference shares of 100 each at a premium of 15%. Payments were to be made as - Rs. 25 on Application; Rs. 35 on Allotment(including premium) and balance on First and Final Call. The applications for 14,000 shares were received and all were accepted. All the money was duly received except the first and final call on 500 shares. All the shares were applied and allotted. Shankar, holding 600 shares paid the whole of the amount along with allotment.
14. A limited Company was registered with a capital of Rs. 6,00,000 in shares of 10 each and issued 20,000 such shares at a premium of Rs. 3 per share, payable as Rs. 3 per share on application, Rs. 5 per share on allotment (including premium) and Rs. 2 per share on first call and balance on final call. All the money payable on application and allotment were duly received but when the first call was made, one shareholder paid the entire balance on his holdings of 500 shares, and another shareholder holding 4,000 shares failed to pay the first call money. Give Journal entries and prepare cash book.
15. Coockie Ltd. issued 70,000 equity shares of 10 each at par payable as to: Rs. 2.50 on application; Rs. 2.00 on allotment; Rs. 2.50 on first call and Rs. 3.00 on final call. All the shares were allotted and amount received except Mitu holding 1000 shares paid the final call money along with first call and Nitu holding 300 shares did not pay the first call money in time. He paid the first call money along with final call. Journalize.
16. Rohit and Company issued 30,000 shares of Rs. 10 each payable Rs. 3 on application, Rs. 3 on allotment and Rs. 2 on first call after two months. All money due on allotment was received, but when the first call was made a shareholder having 400 shares did not pay the first call and a shareholder of 300 shares paid the money for the second and final call of Rs.2 which had not been made as yet. Give the necessary journal entries in the books of the company.
17. Alfa company Ltd. issued 10,000 shares of Rs. 10 each for cash payable at Rs. 3 on application, Rs. 2 on allotment and the balance in two equal instalments. The allotment money was payable on or before March 3, 2006; the first call money on or before 30 June, 2006; and the final call money on or before 31st August, 2006. Mr. ‘A’, whom 600 shares were allotted, paid the entire remaining face value of shares allotted to him on allotment. Record journal entries in company’s books and also prepare their balance sheet on the date.
18. Rupak Ltd. issued 10,000 shares of Rs. 100 each payable Rs. 20 per share on application, Rs. 30 per share on allotment and balance in two calls of Rs. 25 per share. The application and allotment money were duly received. On first call all member pays their dues except one member holding 200 shares, while another member holding 500 shares paid for the balance due in full. Final call was not made. Give journal entries and prepare cash book.
19. Konica Limited registered with an authorised equity capital of Rs. 2,00,000divided into 2,000 shares of Rs. 100 each, issued for subscription of 1,000 shares payable at Rs. 25 per share on application, Rs. 30 per share on allotment, Rs. 20 per share on first call and the balance as and when required. Application money on 1,000 shares was duly received and allotment was made to them. The allotment amount was received in full, but when the first call was made, one shareholder failed to pay the amount on 100 shares held by him and another shareholder with 50 shares, paid the entire amount on his shares. The company did not make any other call. Give the necessary journal entries.
20. Prince Limited issued a prospectus inviting applications for 2,00,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share payable as follows:
With Application Rs. 2,On Allotment (including premium) Rs. 5,On First Call Rs. 3, On Second Call Rs. 3. Mr. ‘Mohit’ whom 400 shares were allotted, failed to pay the allotment money and the two call, Mr. ‘Joly’,whom 600 shares were allotted, failed to pay for the two calls.
21. A Ltd. was registered with a capital of Rs. 5,00,000 in shares of Rs. 10 each and issued 20,000 such shares at a premium of Rs. 2 per share, payable as Rs. 2 per share on application, Rs. 5 per share on allotment (including premium) and Rs. 2 per share on first call made three months later. All the money payable on application and allotment was duly received but when the first call was made, one shareholder paid the entire balance on his holding of 300 shares and another shareholder holding 1,000 shares failed to pay the first call money.
22. XYZ Ltd. offered 12,000 shares of Rs. 10 each at a premium of 10% payable as follows: On Application Rs. 2 (1 st Jan.), On Allotment Rs. 4 (including premium) (1 st April), on First Call Rs. 3 (1st June), Balance on Second & Final Call (1st Aug). Applications were received for 10,800 shares and the directors made allotment. One shareholder to whom 240 shares were allotted paid the entire balance on his share holdings with allotment money and another shareholder did not pay allotment and 1 st call money on his 360 shares but which he paid with final call.
