Sub: Corporate accounting

Unit 1

Q1. Co's issued 1000 E/S of Rs. 10 each at 12 on the following terms:
Payable on application
3 Rs.
Payable on Allotment
5RS.( Including Rs. 2 of premium)
Payable on I call
4 Rs.
Public subscibe 1200 shares. The allotment was made on prorata basis and excess money recived on
application was adjusted against allotment. All the money on allotment and calls were recived
except Mr. X to whom 200 shares were alloted.
Give the necessary journal entries.
Q2.Ansal Ltd. Issued 4lakh shares of Rs. 10 each. The term of payment being Rs. 3 on application,
2 on allotment, 4 on I & final call. The company recived application for 560000 shares. Pro
rata allotment was made on application for 500000 shares. Give journal entries assuming
that an applicant who was alloted 200 shares did not pay allotment and I & Final call
money.
Q3. Ram ltd. Issued a prospectus and invite application for 20000 E/S of rs.10 each at a premium of
10% payable as: 3 Rs. On application, Rs. 5 on alotment (including premium) And balance on call
The issue was subscribe to the extent of 2.5 times.
Application for share below 20 ( 10000 in total ) were rejected
An application of 10000 shares was given 2000 shares
remaining sahres were made pro rata allotment & the excess amount to the extent of share value
was retained .
Shareholder holding 600 shares failed to pay the allotment money.
Share holder holding 900 shares fails to pay call money. Show necessary journal entries in the
books of company
Q4. Journalized the following entries:
1.
100 shares of Rs. 100 each issued at a discount of 10 % were forfited for the non payment of
allotment money of Rs. 50 per share . The I call on these sahres at 20 Rs. / share were not made .
The forefited share were reissued for 7000 fully paid.
2.
50 share of rs. 100 each issued at a premium of Rs. 5 each payable with allotment were
forefited for the non payment of allotment money of Rs. 9 / share including premium.
The I & final on these share at rs. 3 / sahre were not made. The forfeited share were reissued @ Rs.
12 / sahre fully paid.
3.
1000 shares of Rs. 10 each issued at par were forefited for the non payment of the final call
of Rs. 2 / sahre. These shares were reissued @ Rs. 8 / share fully paid up.
Q5.Ram ltd. Issued a prospectus and invite application for 20000 E/S of rs.10 each at a premium of
10% payable as: 3 Rs. On application, Rs. 5 on alotment (including premium) And balance on call
The issue was subscribe to the extent of 2.5 times.
Application for share below 20 ( 5000 in total ) were rejected
An application of 5000 shares was given 1000 shares
remaining sahres were made pro rata allotment & the excess amount to the extent of share value
was retained .
Shareholder holding 300 shares failed to pay the allotment money.
Share holder holding 150 shares fails to pay call money. All 450 shares were forefited . 150 E/S
out of the lot of 300 shares were reissued at a premium of 20 % Show necessary journal entries in
the books of company
Q6. Ram ltd. Issued a prospectus and invite application for 15000 E/S of rs.100each at a premium
of RS. 25 / share payable as: 50 Rs. On application, Rs. 50 on alotment (including premium) And

25 Rs. On I call. Company recived application for 140000 shares . Dirctors decided to make full
amount to the applicant . All the amount duly recived except :
1
Mr. G holds 1000 shares faied to pay allotment money on due date but paid this amount with
I call.
2.
priyanka holds 800 shares has paid th I call money along with allotment money. Intrest were
charged and paid according to the provision . Give necessary journal entries.