Important Questions of Class 12 Accountancy Ch-8 Issue of Shares
Question 1:
Beeta Ltd. offered for subscription 1,00,000 equity shares of ₹ 10 each at a premium of 100% payable entirely on application. Applications were received for 5,00,000 equity shares. The company decided to allot the shares on a pro-rata basis to all the applicants. The amount received by the company on application was:
(A) ₹ 1,00,00,000
(B) ₹ 20,00,000
(C) ₹ 1,20,00,000
(D) ₹ 80,00,000
Answer
(A) ₹ 1,00,00,000
Important Questions of Class 12 Accountancy Ch-8 Issue of Shares
Question 2:
The amount of share capital which a company is authorized to issue by its Memorandum of Association is called:
(A) Issued capital
(B) Subscribed capital
(C) Reserve capital
(D) Nominal capital
Answer
(D) Nominal Capital
Important Questions of Class 12 Accountancy Ch-8 Issue of Shares
Question 3:
Sinoy Ltd. issued 20,000 shares of ₹ 10 each at a premium of ₹ 6. The amount was payable as follows:
On Application – ₹ 7 per share (Including Premium ₹ 1 per share)
On Allotment – ₹ 5 per share (Including Premium ₹ 2 per share)
On First and Final Call – Balance amount
The issue was fully subscribed. All the money was duly received except the allotment and first and final call on 1,000 shares. These shares were forfeited. On forfeiture of these shares, the ‘Securities Premium Account’ will be debited by:
(A) ₹ 2,000 (B) ₹ 3,000 (C) ₹ 5,000 (D) ₹ 20,000
Answer
(B) ₹ 3,000
Important Questions of Class 12 Accountancy Ch-8 Issue of Shares
Question 4:
Money not received from shareholders on allotment or calls is:
(A) Debited to calls in advance account
(B) Credited to calls in advance account
(C) Debited to calls in arrears account
(D) Credited to calls in arrears account
Answer
(C) Debited to calls in arrears account
Important Questions of Class 12 Accountancy Ch-8 Issue of Shares
Question 5:
Shringar Ltd. was registered with an authorised capital of ₹ 5,00,000 divided into equity shares of ₹ 10 each. The company issued a prospectus inviting applications for 20,000 equity shares. The amount was payable as follows:
On Application – ₹ 3 per share
On Allotment – ₹ 5 per share
On First and Final Call – Balance
Applications were received for 19,000 equity shares, and allotment was made to all the applicants. All the amounts were duly received except the first and final call on 5,000 shares.
Present the share capital in the Company’s Balance Sheet as per Schedule III, Part I of the Companies Act, 2013. Also, prepare ‘Notes to Accounts’ for the same.
Answer
Important Questions of Class 12 Accountancy Ch-8 Issue of Shares
Question 6:
Diamond Ltd. issued a prospectus inviting applications for 20,000 shares of ₹10 each. The amount was payable as follows:
On Application – ₹4 per share
On Allotment – ₹4 per share
On First and Final Call – Balance
Applications were received for 45,000 shares, and the allotment was made as follows:
Category (i): Applicants for 35,000 shares were allotted 15,000 shares.
Category (ii): Applicants for 10,000 shares were allotted 5,000 shares.
It was decided that excess money received on application be adjusted towards sum due on allotment and calls.
Amar, an applicant from Category (ii), who was allotted 500 shares, failed to pay the first and final call. His shares were forfeited and subsequently reissued at ₹2 per share as fully paid-up.
Pass necessary journal entries to record the above transactions in the books of Diamond Ltd.
Important Questions of Class 12 Accountancy Ch-8 Issue of Shares
Question 7:
Pearl Ltd. issued a prospectus inviting applications for 40,000 shares of ₹10 each at a premium of 20%. The amount was payable as follows:
On Application – ₹5 per share
On Allotment – ₹5 per share (including premium)
On First and Final Call – Balance
Applications for 60,000 shares were received and allotment was made on a pro-rata basis to all applicants. Excess money received on application was adjusted towards the amount due on allotment.
Sameer who had applied for 1,200 shares failed to pay the allotment money. His shares were forfeited immediately after allotment. All the forfeited shares were reissued at ₹7 per share as ₹8 paid-up. First and Final Call was not yet made.
Pass necessary journal entries to record the above transactions in the books of Pearl Ltd. Open ‘Calls in Arrears Account’ wherever necessary.
Important Questions of Class 12 Accountancy Ch-8 Issue of Shares
