Accounts Solution | Class 12th Chapter 8. Company Accounts: Issue of Shares | Maharashtra Board HSC Solution

Issue of Shares

Maharashtra State Board HSC Notes Online Solution for Free

Check Out the Sum Solutions. This are the HSC notes online with Calculation and explanatory notes.

 1. Vijay Ltd. Was registered with an authorized capital of 15,00,000 divided into 1,50,000 equity shares of 10 each. 

Company issued 1,00,000 equity shares of 10 each at premium of 2 per share. Company received application for 80,000 equity shares and were allotted the shares. 

Company received application money 3 per share, allotment money 4 per share  

(Including premium) and first call money 3 per share. 

The Directors have not made final call of 2 per share. All money were received except one shareholder holding 500 shares did not pay first call. 

 2. Anand Company Limited issued 1,00,000 Preference share of 10 each payable as On  

On Application 4 

On Allotment 3 

On First Call 2 

On Second & Final Call 1 

Company received application for all these shares and received all money. 

 3. Rohini Company Limited issued 25,000 equity shares of ₹ 100 each payable as follows - 

On Application ₹20 

On Allotment ₹30 

On First Call ₹20 

On Second & Final Call ₹30 

Application were received for ₹22,000 equity shares and allotment of shares were made to them. All money was received by the company.

Maharashtra State Board HSC

Maharashtra State Board HSC

 4. Deepak Manufacturing Co. Ltd. Issued a prospectus inviting applications for 1,00,000 equity shares of ₹10 each payable as follows - 

₹ 2 on Application 

₹ 4 on Allotment 

₹ 2 on first call 

₹ 2 on final call 


 5. Sucheta Company Limited issued ₹20,00,000 new capital divided into ₹100 equity shares at a Premium of ₹20 per share payable as ₹10 on Application ₹40 on Allotment and ₹10 premium ₹50 on Final call and ₹10 premium. 

The issue was oversubscribed to the extent of 26000 equity shares. The application on 2000 shares were sent letter of regret and their application money was refunded. 

Remaining applications were allotted share on pro-rata basis. All the money due on Allotment and Final Call was duly received. 

Application were received for ₹1,20,000 equity shares. The Directors decided to reject excess application and refunded application money on that. Company received all money. 

6. Suhas Limited issued 10000 equity shares of ₹10 each at a premium of ₹2 per share payable ₹3 on application, ₹5 (including premium) on allotment and the balance in two calls of equal amount. 

Applications were received for 11,000 equity shares and pro-rata allotment was made for all the applicants. The excess application money was adjusted towards allotment. 

Mrs. Shobha who were allotted 200 equity shares failed to pay F/F/C and her shares were forfeited after the final call. 

7. Subhash Company Limited issues 2000 Equity shares of ₹100 each payable as ₹ 30 on application, ₹ 30 on allotment, ₹ 40 on first and final call.  

All the shares were subscribed and duly allotted. Company made all the calls. All cash was duly received except the first & final call on 100 equity shares. These shares were forfeited by the company and were re-issued as fully paid for ₹75 per share. 

 8. Pass Journal entries for the forfeiture and re-issue of shares in the following cases. 

A) Asha Ltd. forfeited 100 equity shares of ₹ 20 each fully called up for non-payment of first call of ₹ 3 per share and final call of ₹ 5 per share. 80 shares of these were reissued at ₹ 15 per share fully paid 

B) Bhakti Ltd. forfeited 100 equity shares of ₹ 10 each, ₹ 6 called-up on which the shareholder paid application and allotment of ₹ 5 per share. Of these 80 shares were re-issued as fully paid-up for 16 per share. 

C) Konark Ltd. forfeited 50 shares of ₹ 10 each, ₹ 8 called-up. The shareholder failed to pay first call of ₹ 3 per share. Later on, 30 shares of these were re-issued at ₹ 7 per share. 


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