MOHIT EDUCOMP PVT. LTD.

Main Centre- 59 Jatindra Mohan Avenue

9830741471/8017567120/03325551197
Website- www.mohitedu.com
www.facebook.com/education.mohit
Cs EXECUTIVE company ACCOUNTS TEST PAPER
TIME ALLOWED 1.30 Hrs FULL MARKS 10*5=50
Q.1 MA Ltd. invited application for 11,000 shares of Rs 10 each, issued at 20% premium payable as: Application
Rs 3 (including Re. 1 premium)
Allotment Rs 4 (Including Re. 1 premium)
1ST call Rs 3
2ND call Rs 2
Applications were received for 24,000 shares
Category I:- One fourth of the shares applied for allotted 2000 shares
Category II:- Two fourth of the applied for allotted 9000 shares
Category III:- Remaining application were rejected
Excess amount received is to be adjusted towards allotment and any amount beyond that shall be refunded.
Mr. Ram, holding 300 shares out of category II failed to pay allotment and two calls and his shares were
forfeited and re- issued @ Rs 11 fully paid up.
Pass Journal Entries.
Q.2 MA Ltd. came up with public issue of 30, 00,000 equity shares of Rs 10 each at Rs 15 per share. A,B & C took
underwriting of the issue in 3:2:1 ratio. Application were received for 27,00,000 shares. The marked
applications were received as under:
A 8,00,000 shares: B 7,00,000 shares,: C 6,00,000 shares
Commission payable to underwriters is at 5% on the face value of shares.
i) Compute the liability of each underwriter as regards the number of shares to be taken up.
ii) Pass journal entries in the books of MA Ltd. to record the transactions relating to underwriters.
Q.3 The Balance sheet of X Ltd. as on 31St March, 2015 is as follows:

Serial No. Equity & Liabilities Rs.

1 Shareholders Funds

A) Share Capital 2,90,000

B) Reserves & surplus
48,000
Current Liabilities

Trade Payables
56,500
TOTAL
2 3,94,500
ASSETS Fixed

Assets
 1 Tangible Assets 3,45,000

Non current investments 18,500

Current Assets

2 Cash & Cash Equivalents ( Bank) 31,000

TOTAL 3,94,500

The share capital of the company consists of Rs 50 each equity shares of Rs 2, 25,000 and Rs 100 each preference
shares of Rs 65,000 (Issued on 1.4.2013). Reserves and surplus comprise profit and Loss account only.
In order to facilitate the redemption of preference shares at a premium of 10% the company decided:

a) To sell all the investment for Rs 14,000.

b) To finance part of redemption from company funds, subject to leaving a bank balance of 14,000.
c) To issue minimum equity share of Rs 50 each at a premium of Rs 10 per share to raise the balance of funds
required.
d) You are required to pass:
The necessary journal entries to record the above transaction and prepare the balance sheet as on
completion of the above transaction.
Q.4 MA ltd.issued 1, 00,000 shares of Rs. 100 each at 10% premium payable as follows:
Application Rs 20
Allotment Rs 40
1st call Rs 30
nd
2 Call Rs 20
Public subscribed for Rs 1,20,000 shares and proportionate allotment was made to them Mr.
X and Mr. Y who applied for 6000 & 9000shares failed to pay allotment & 1 st call onwards
respectively. Shares of Mr. X were forfeiture before 2 nd call. All the shares were re-issued at Rs
90 fully paid up. Pass journal Entry.
5) Rathi ltd forfeited 200 Shares of Rd 10 each, Rs 8 per share being called up on which a
shareholder paid application and allotments money of Rs. 5 per shares but did not pay the first
call money of Rs. 3 per share. Of these shares forfeited shares, 150 shares were subsequently re
issued by the company as fully paid up for Rs. 8 per share. Give journals entries for the forfeiture
and re issue of shares.
CA CS MOHIT AGARWAL
9830741471