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INTERNATIONAL INDIAN SCHOOL, RIYADH

CLASS - XII WORKSHEET OF ACCOUNTANCY – II TERM – 2009

1. ‘L’ limited purchased assets of Rs.6,30,000 from Amit limited and issued equity
shares of Rs.100 each fully paid in consideration, What journal entries will be made,
If the shares are issued:
(a) At par
(b) At discount of 10% and
(c) At a premium of 20%

2. Alka Ltd. Invited applications for 60,000 equity shares of Rs.50 each issued at a
premium of Rs.10 per share. The amount was payable as follows:

On application Rs.10
On allotment Rs.20(including premium)
Balance on a call

Applications for 80,000 shares were received. Applications for 20,000 shares were
rejected and full allotment was made to the remaining applicants. All calls were made
and were duly received except the call on 600 shares which were allotted to M. His
shares were forfeited. The forfeited shares were re-issued at Rs.60 fully paid up. Pass
journal entries in the books of Alka Ltd.

3. K Ltd. has been registered with an authorized capital of Rs.2,00,000 divided into
2000 shares of Rs.100 each of which, 1000 shares were offered for public
subscription at a premium of Rs.5 per share, payable as under:
On application Rs.10, on allotment Rs,25 including premium, on 1 st call Rs.40 and on
second call Rs.30.
Applications were received for 1800 shares of which application for 300 shares were
rejected outright, the rest of the application were allotted 1000 shares on pro-rate
basis. Excess application money was transferred to allotment.
All the monies were duly received except from R, holder of 100 shares, who failed to
pay first call money. His shares were later forfeited and reissued to Shyam at Rs.60
per share Rs.70 paid up. Final call has not been made.

Pass necessary journal entries in the books of K Ltd.

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4. The Delhi Cloth Mills Ltd. Invited application for 10,000 shares of Rs.100 each at a
premium of Rs.10 each payable as follows: Rs.50 on application, Rs.35 on allotment
(including premium) and Rs.25 on a call.
Applications for 15000 shares were received. Applications for 2500 shares did not
get ant allotment and their money refunded. Allotment was made pro-rate to the
remaining applicants.
Mr. A allotted 160 shares. He failed to pay the amount due on allotment and call
money. The company forfeited his shares and subsequently reissued Rs.105 per
share. Show the journal entries in the books of the company.
5. M Ltd. Issued 30,000 equity shares of Rs.10 each at a discount of Rs.1 per share
(to be adjusted on allotment) payable as follows: Rs.3 per share on application, Rs.2
per share on allotment and Rs.4 per share on a call.

Applications for 40,000 shares were received and pro-rate allotment was made
without rejecting of any application.

Mr. R allotted 100 shares. He failed to pay the amount due on allotment and call
money. His shares were forfeited and re-issued at Rs.8 per share as fully paid.

Pass the necessary journal entries to record the above transactions.

6. A Ltd. Invited application for 80000 shares of Rs.10 each payable at a premium of
Rs.4 per share. The amount was payable as follows; on application Rs.5 per share,
on allotment Rs.9 per share (including premium). Applications were received for 14,
0000 shares. Allotment was made on the following basis:

(i) To applicants for 80,000 shares-60000 shares.

(ii) To applicants for 60,000 shares-20,000 shares.

Money overpaid on application was utilized towards sums due on allotment.Rajiv who
had applied for 1200 shares failed to pay his dues and his shares were forfeited. (Ist
category of allotment)

Pass necessary journal entries in the books of A Ltd. To record the above
transactions.
7. X Ltd. Offered 10,000 shares of Rs.10 each at a premium of Rs.2 per share. Full
amount is payable on applications, 15000 applications were received and pro-rata
allotment was made without any rejection. Write journal entries in the books of X Ltd

8. Give Journal entries to record forfeiture and re-issue of share in the following cases:

(i) 50 Shares of Rs.10 each issued at a premium of Rs.4 each payable with
allotment were forfeited for non-payment of allotment money of Rs.9 per
share including premium. The first and final call on these shares of Rs.3 per
share was not made. The forfeited shares were reissued at Rs.12 per share
fully paid up.

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(j) VT Ltd. Forfeited 20 shares of Rs.10 each (Rs.7 called up) issued at a discount
of 10% to Meena on which she had paid Rs.2 per share. Out of these 18
shares were re-issued to Neeta as Rs.8 called up for Rs.6 per share

9. X Ltd. invited applications for 10,000 equity shares of Rs.10 each for public
subscription. The amount of these shares was payable as under: On application Rs.1
per share, on allotment Rs.2 per share, on first call Rs.3 per share, on second call
Rs.4 per share, All sums payable on application, allotment and calls were duly
received with the following exceptions:

(i) A, who holds 200 shares failed to pay the money on allotment and calls
(j) B, to whom 150 shares were allotted failed to pay the money on first call and
final call
(k) C, who holds 50 shares did not pay the amount of final call.
The shares of A, B and C were forfeited and were subsequently reissued for cash
as fully paid at a discount of 5% journalise.

10. X Ltd has an authorized capital of Rs.10, 00,000 divided into equity shares of Rs.10
each. The company invited applications for 50,000 shares; applications for 40,000
shares were received. All calls were made and duly received except the final call Rs.2
per share on 1000 shares.500 of the shares on which final call was not received were
forfeited show how share capital will appear in the Balance sheet of the company as
per schedule-vi part I of company’s Act 1956.

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