Company Accounts Questions

While issuing the share capital for public subscription where there is no articles of association of its own, the following provisions of Table A will apply: (A) A period of one month must elapse between two calls.(B) The amount of call should not exceed 25% of the face value of the share.(C) A minimum of 7 days' notice is given to the shareholders to pay the amount.(D) Calls must be made on a uniform basis on all shares within the same class. Choose the correct answer from the options given below:

G.S. Rai company ltd. purchased assets of the book value of Rs. 98,000 from another firm. It was agreed that purchase consideration be paid by issuing 11% debentures of Rs. 100 each. Assume debentures have been issued at discount of 20%Identify the number of debentures issued by the company to the vendor

If a company issue Rs. 1,00,000, 9% debentures of Rs. 100 each at discount of 5% but redeemable at premium of 5% then what amount will be debited to Loss on Issue of Debentures Account?

The director of Priya polymer Limited resolved that 200 equity shares of Rs. 100 each be forfeited for non-payment of the second and final call of Rs. 30 per share. Out of these, 150 shares were re-issued at Rs. 60 per share to Monit. The amount of capital reserve will be:

The important steps in the procedure of share issue are :(A) The company issues the prospectus to the public.(B) The company has to get minimum subscription within 120 days from the date of the issue of the prospectus.(C) The prospective investors intending to subscribe the share capital of the company would make an application along with the application money.(D) Letters of allotment are sent to those whom the shares have been alloted, and letters of regret to those to whom no allotment has been made.Choose the correct sequence of steps from the options given below:

Minimum subscription is the minimum amount that, in the opinion of directors, must be raised to meet the needs of business operations of the company relating to: (A) The price of any property purchased, or to be purchased, which has to be met wholly or partly out of the proceeds of issue;(B) Preliminary expenses payable by the company and any commission payable in connection with the issue of shares;(C) Working capital;(D) Any other expenditure required for the usual conduct of business operations Choose the correct answer from the options given below:

Debenture Application & Allotment A/c Dr. 95,000Loss on Issue of Debentures A/c Dr. 10,000To 9% Debenture A/c 1,00,000To Premium on Redemption of Debentures A/c 5,000On the basis of the above entry, determine the rate of discount at which Rs. 1,00,000, 9% debentures of Rs. 100 each were issued if they were to be redeemed at a premium of 5%.

Securities Premium Account can be used only for the following purposes:(A) To issue partly paid bonus shares to the extent not exceeding unissued share capital of the company;(B). Buy back of own shares.(C). To write-off the expenses of, or commission paid, or discount allowed on any securities of the company;(D). To pay premium on the redemption of preference shares or debentures of the company.Choose the correct answer from the options given below:

The following journal entry appears in the books of X Co. Ltd.Bank A/c Dr. 4,75,000Loss on issue of debenture A/c Dr. 75,000To 12% Debentures A/c 5,00,000To Premium on Redemption of Debenture A/c 50,000In this case the debentures have been issued at a discount of 5% . What is the rate of premium on redemption of debentures?

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.On Reissue of 500 forfeited shares as fully paid at Rs. 8 per share, what amount will be debited to Shares Forfeiture Account?

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.What amount will be credited to Equity Share Application Account on February 10, 2024?

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.What is the amount of excess application money credited to share allotment and money refunded on rejected application in totality?

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.What is the amount of Profit on reissue of Forfeited Shares Accounts transferred to capital reserve?

On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.On Forfeiture of 500 shares for non-payment of call money, what amount will be credited to Shares Forfeiture Account?