What is forfeiture of share?

What are calls-in arrears?

What is capital redemption reserve?
What is purchase consideration?
Give a meaning of interim dividend.
What do you mean by call-in-advance?

State the methods of valuation of shares.

What is internal reconstruction?

Write a note on ‘Capital Redemption Reserve’.

What is Oversubscription?
What is super profit?
Write Short Note on “Purchase of Business”
Reissue of Forfeited Shares — Explain.
Write a note on Net assets method.
What are the needs for valuation of Shares?

What do you mean by capital reductions?

“Partial Underwriting”- Explain.

What is a share? List out various kinds of shares

Explain the methods of valuation of share.

What is Debenture? What are the kinds of Debentures?

The directors of a company forfeited 100 shares of 10 each fully called up for non-payment of first call of
2 per share and final call of 3 per share. 60 of these shares were subsequently re-issued at 6 per share
fully paid up. Give journal entries.

A’ Co. Ltd forfeit 10 shares of Rs. 50 each belonging to ‘Karthick’ who had paid Rs. 5 per share on
application, Rs. 10 on allotment and Rs. 15 on first call but failed to pay the final call of Rs. 20. The same
shares are then reissued to ‘Raj’ as fully paid on receipt of Rs. 400. Pass journal entries to record the
forfeiture and the reissue of shares.

Calculate the amount of goodwill on the basis of three years purchase of the last five year’s average
profits. The profits for the last five years are :
Rs. I year 4,800
II year 7,200
III year 10,000
IV year 3,000
V year 5,000
Kumar Ltd. was incorporated with an authorized capital of 2,00,000 Equity shares of Rs. 10 each. The
Company offered to the public all the shares which is payable as follows. (a) On Application Rs. 3 per
share (b) On Allotment Rs. 5 per share (c) On First and Final call Rs. 2 per share Directors made the
allotment for the entire shares. Pass journal entries and draft the Balance Sheet.
TITAN Ltd issues 20,000 12% debentures of 100 each at a discount of 5% payable after 6 years at a
premium of 5%. Pass journal entries for issue and redemption of debentures.

Three year’s purchase of the last four years average profit is agreed as the value of goodwill. The profit
and losses for the last four years are as follows : I year 50,000; II year 80,000; III year 30,000 [loss] and IV
year 60,000. Calculate the amount of Goodwill.

The balances arrived by ABC Ltd on 31.03.2013 as follows :

Opening stock 7,500 Dividend paid 500

Sales 35,000 Interim dividend paid 400
Purchases 24,500 Bad debts 158
Wages 5,000 Loan to director 325
Discount (Dr.) 700 Discount (Cr.) 500
Salary 750 Rent 495
General expense 1,705 Reserve 1,550
P and L a/c [Cr.] (31.03.2012) 1,503 Cash 1,620
Share capital (Rs. 1 each) 10,000
Debtors 3,750
Creditors 1,750
Machinery 2,900
Adjustments :

(a) Closing stock 8,200

(b) Depreciation on machinery @ 10%

(c) Reserve for discount on debtors @ 5%

Prepare company final a/c as on 31.03.2013.

Kalyan Co. Ltd was formed with a capital of Rs. 10,00,000 in Rs. 10 shares, the whole amount being
issued to the public. The underwriting of these shares was as follows:

A - 35,000 B - 30,000 C - 20,000 D - 10,000 E - 3,000 F - 2,000

All the marked application forms were to go in relief of the underwriters whose stamp they bear. The
application forms marked by the underwriters were:

A - 10,000 B - 22,5000 C - 20,000 D - 7,500 E - 5,000 F - Nil

Applications for 20,000 share were received on forms not marked. Draw up a statement showing the
number of shared each underwriter had to take up.

Senthil Ltd., issued 2,000 shares of Rs. 100 each at a premium by 10% payable as follows :

Rs. 25 on application

Rs. 35 on allotment (including premium)

Rs. 20 on first call

Rs. 30 on final call.

1,800 shares were applied for and allotted. All the money was received with the exception of first and
final calls on 200 shares held by Raj. These shares were forfeited. Give journal entries and prepare
balance sheet.

A Ltd. invited applications for 10,000 shares of Rs. 100 each at a discount of 5% payable as follows :

On application Rs. 25

On allotment Rs. 34

On first and final call Rs. 36.

Applications were received for 9000 shares and all of these were accepted. All moneys due were
received except the first and final call on 100 shares which were forfeited. Of the forfeited shares, 50
shares were reissued at the rate of Rs. 90 as fully paid. Show necessary journal entries in the books of
the company.