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C-78 BDA KOHEFIZA, MOBILE 9893905143

SHARE CAPITAL
1. Shares of ………….. company can be transferred but shares of ……………. Company can not be transferred.
2. Maximum members in private company is …………. And in public is ……………
3. The liability of company is (limited / unlimited)
4. A company issued 10,000 shares of Rs 10 each, it has called amount on 8000 shares only. How will the remaining shares be
shown in balance sheet. ………………
5. When shares are issued to known people it is known as …………….
6. When shares are issued to existing share holders it is known as ……………….
7. When shares are issued to employees it is known as ……………….
8. Three purpose for using securities premium amount…………………………………..
9. S.S.S Ltd wants to issue 1,00,000 equity shares at a discount to public . Can it do so?
10. Preliminary expenses amount; amount due to vendor or 90% of application amount can be set as ……………………….
11. If company has not prepared article of association than it will follow rules of ………..
12. The portion of authorized capital of a company which can only be called up during winding up is
called……………………………
13. …………..; …………….. and …………… alternatives are available to the company on over subscription of shares?
14. Is it correct to say that partnership act 1932 is silent with regard to maximum number , if correct which act specifies the limit of
maximum number of partners?.................
15. Why shares are issued for consideration other than cash?..........................
16. How profit on reissue of shares can be dealt?..........................
17. Subscribed not fully called means, any holder has not pay the amount of shares. Is it correct?
18. Companies formed by special chartered of king is ……………
19. Companies formed by legislature act is ……………
20. Companies formed by company act 2013 is ……………
21. If the amount of premium on shares to be forfeited is received partially, then securities premium reserve A/c is debited with
--------------- at the time of forfeiture of shares.
22. On forfeiture of shares amount of discount cannot exceed-----------------. Known as maximum permissible discount.
23. A company where there is only one owner, is known as ……………
24. Which kind of preference shares entitled its holders to receive dividend of previous year also. …………………
25. Which document is an invitation to public to subscribe for shares ………….
26. Own shares purchase by company is known as ……………
27. Why would an investor prefer to invest in debentures instead of shares? Why would an investor prefer to invest partly in shares
and partly in debentures? ………………..
28. What maximum amount of discount can be allowed at the time of reissue of forfeited shares? When shares were originally
issued at premium.
29. The rate of interest on calls in arrears is …………….. on calls on advance is ………
30. Which of the following capital is shown in balance sheet.
Auothorised capital/ issued capital/ subscribed capital/ reserve capital
31. Equity shares can not be issued for the purpose of
Cash / asset purchase/ payment of debentures/ paying dividend
32. Liability of a share holder is limited to …………. Of the shares allotted to him.
Paid up value/ called up / face value / none of these
33. Acompany issued 25,000 shares and received application for 50,000 shares and if shares are allotted on pro rata basis, what is
the ratio of allotment………….
34. Portion of the capital reserved by the company and will be used at the time of liquidation is known as reserve capital/ capital
reserve / issued capital / subs cribbed capital.
35. The paid up capital of one person company should not exceed ………….. amount.
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36.
Reserve capital is not a part of subscribed capital/ issued capital/ authorized capital.
37. Penalty in delaying the refund amount to applicants whom shares are not allotted is …..
38. If purchased consideration is more than worth the net worth, difference is written as ……
39. As per SEBI guidelines , amount called on application of shares should not be less than ........
40. If applicants for 80,000 shares were allotted 60,000 shares, than Raj who was allotted 1200 shares must have applied for
…………
41. Minimum subscription should be 95% of issued capital . is it correct ?
42. Pro rata is made in case of undersubscription. Is it correct ?
43. Security premium is debited in forfeiture entry, in case the person had paid his premium money. Is it correct ?
44. Private placement of shares means , when company offers its shares to a selected or known people, both private and public
company can issue such shares. Conditions: can not be offered to more than 50 people in a financial year. True /false
These shares are issues same as other equity shares at par or at premium.
45. ESOP (Sweat equity) shares are issued by the company to its employees or directors at a discount or for consideration other than
cash. True / false
46. Right issue means when company offers its existing shareholders to subscribe for share before offering to common public. The
shareholders have the right to be offered shares first to them. True / false
47. Preference shares which do not carry the right to share surplus profit is
Non convertible/ non participating/ non redeemable/ non cumulative
48. Metacafe ltd. Issued 50,000 shares of Rs 100 each payable Rs 20 on application (1st may 2012), Rs 30 on allotment (jan 2013)
Rs 20 on first call(july 1)balance on last call(feb 2014). Shankar a shareholder holding 5000 shares did not pay first call which
he paid with second call. Total amount received on feb 1st was ----
49. S.S Ltd has a paid up capital of R 6,00,000 and a balance of Rs 15,00,000 in the securities premium A/c. The company
management do not want to carry over this balance . State the purpose for which this balance can be utilized?
50. As a director of a company you had invited application of 30,000 shares of Rs 19 each at a premium of Rs 2 each. The total
application money received at Rs 2 per share was 74,000. It will be a case of
(fair subscription/ over subscription/ under subscription/ none of these.)
51. X ltd issued 10,000 shares of RS 10 each, Rs 8 called up and received. It will be shown in notes to accounts to balance sheet
as….. issued capital/ subscribed and fully paid/ subscribed but not fully paid/ none of these.
52. If 200 shares of Rs 10 each issued at a premium of Rs 1 each are forfeited for the non payment of final call of Rs 2 share
Forfeiture A/C will be credited by...
53. The company forfeited Rs 3500 on 500 shares , it then reissued 300 shares at Rs 500 discount, what Amount will be transferred
to capital reserve ………………
54. A company issued 10,000 shares of Rs 10 each , a share holder who holds 1000 shares failed to pay allotment Rs 4 per share and
ist call Rs 2 per share. What amount will be received by company on issue of shares……………..
55. Balance of forfeiture is shown under which heading in balance sheet…………
56. A company issued 10,000 shares of Rs 10 , payable 3 on application; 5 on allotment and 2 on call. Company received 12000
applications for shares and allotment was done on pro- rata basis. What amount will be received on allotment , if there is a arrear
on allotment of Rs 1000. ……………….
57. X ltd made pro rata allotment of shares of Rs 50 each , in the ratio 5:4. Ram failed to pay allotment money and his shares were
forfeited. 3/4th of his share was reissued for Rs 4020 with maximum permissible discount of RS 1980 as fully paid. Ram must
have applied for ......... shares? (answer 200)
58. If a company forfeited 100 shares of x and 200 shares of Y. X paid Rs 3 out of Rs 10 per share and Y paid 7 out of 10 per share.
250 shares were reissued at Rs 9 each, including full shares of Y. Calculate amount of capital reserve.
59. Purchased an asset of 1,10,000 and for payment equity shares are issued of Rs 10 each at 10% premium. How many shares are
issued? ……………….
60. Purchased an asset of 5,00,000 and for payment Rs 1,50,000 are paid by cheque and for equity shares are issued of Rs 100 each
at 25% premium. How many shares are issued? ……………….
61. Purchased an asset of 1,10,000 and liability of 30,000 ; for the purchase consideration of 1,00,000. payment is made by issuing
shares. How difference in entry will be recorded ?
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62.
Purchased an asset of 5,00,000 and for payment bills payable of 150,000 was accepted , balance was paid by preference shares of 20
each at 10% premium. In journal entry of payment, along with shares capital account and security premium reserve account
……………. Account will also be credited with …………. Amount.
63. Issued 50,000 shares of Rs 10 each , payable 2 on application; 5 on allotment and 3 on call; Rajeev who holds 1000 shares, did
not pay allotment and call amount. What is the amount of subscribed capital shown in balance sheet? ………………

64. Issued 70,000 shares of Rs 20 each , payable 10 on application; 5 on allotment and 5 on call; Ravi who holds 2000 shares did
not pay allotment and call amount. His shares are forfeited. What is the amount of subscribed capital shown in balance sheet?
………………
65. Issued 90,000 shares of Rs 10 each , at Rs 1 premium payable 5 on application; 3 on allotment and 3 on call; Kumar who holds
5000 shares did not pay call amount. His shares are forfeited and reissued at 9 per share fully paid up.
a. What is the amount of subscribed capital shown in balance sheet? ………………
b. What is the amount to be shown in balance sheet as reserve and surplus?
66. Issued 50,000 shares of Rs 10 each , payable 2 on application; 5 on allotment and 3 on call; when allotment was called Ramesh
who holds 1000 shares paid his call amount with allotment. Where will you show calls in advance in balance sheet, if full
amount was called?
67. Issued 50,000 shares of Rs 10 each , payable 2 on application; 5 on allotment and 3 on call; when allotment was called Ramesh
who holds 1000 shares paid his call amount with allotment company did not call the call amount . Where will you show calls in
advance in balance sheet, ?
68. Issued 1,00,000 shares of Rs 100 each , payable 20 on application; 30 on allotment and 30 on 1st call and 20 on 2nd call. Rajesh
holder of 1000 shares did not pay allotment and calls money , another holdere of 500 shares, Roopesh did not pay calls money.
Shares of Rajeesh are forfeited.
a. What is the amount of subscribed not fully paid?
b. What is the amount of subscribed and fully paid?
c. What is the amount of bank to be shown in balance sheet?
69. Company issued 5000 shares of 10 each to its promoter, it also Issued 90,000 shares to public of Rs 10 each , payable 2 on
application; 5 on allotment and 3 on call; applications were received for 110,000 share. Allotment was done on pra]o- rata basis.
when allotment was called Ramesh who holds 3000 shares did not pay his allotment and call amount, his shares were forfeited .
half of the forfeited shares were reissued at Rs 9 per share.
a. What is the of subscribed capital to be shown in balance sheet?
b. What is the amount of reserve and surplus to be shown in balance sheet?

FORFEITURE OF SHARES

70. The Directors of a company forfeited 500 shares of Rs. 10 each issued at a premium of Rs. 3 per share, for the non payment of
the first call money of Rs. 3 per share. the final call of Rs. 2 per share has not been made. Half the forfeited shares were
reissued at Rs. 2,500 fully paid. Record the journal entries for the forfeiture and reissue of shares.
71. Kishore Ltd. forfeited 200 shares of Rs. 10 each issued at a premium of Rs 1 for non payment of allotment of Rs. 3 per share
(including premium )and the final call of Rs. 3 per share . 100 forfeited shares were reissued as fully paid for Rs. 11 per share
and balance of the shares were reissued at Rs. 7/- per share. Give Journal entries to record forfeiture and reissue of shares.
72. Z limited forfeited 2,000 equity shares of Rs. 10 each issued at a premium of Rs. 5 per share held by Saini for non payment of
the final call of Rs. 3 per share of these 100 shares were reissued to Karan at a discount of Rs. 4 per share.
73. 50 shares of Rs. 10 each issued at a premium of Rs. 2 each payable with allotment were forfeited for the non payment of
allotment money of Rs. 5 per share including premium. The first and final call on these shares at Rs. 3 per share was not made.
the forfeited shares were reissued @ Rs. 12 per share fully paid up.
74. P Ltd. forfeited 200 shares of Ravi of Rs. 10 each Rs. 8 called up on which he had paid application and allotment money of Rs. 3
per share. Out of these, 100 shares were re-issued as fully paid up for Rs. 8 per share.
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75.
Q Ltd. forfeited 300 shares of Rs. 10 each, Rs. 7 called up for non payment of first call of Rs. 2 per share out of these, 100 shares
were immediately re-issued at Rs. 11 per share.
76. R Ltd. forfeited 600 shares of Rs. 10 each on which first call of Rs. 3 per share was not received, the second and final call of Rs.
2 per share has not yet been called. Out of these, 200 shares were re-issued as Rs. 8 paid up for Rs. 7 per share.
77. S. Ltd., forfeited 800 shares of Rs. 10 each, Rs. 7.50 paid for non payment of final call of Rs. 2,.50 per share. Out of these 600
shares were re-issued for Rs. 9- per share as fully paid up. Pass necessary journal entries.
78. 100 shares of Rs. 10 each issued at par were forfeited for the non payment of the final call of Rs. 2 per share. These shares were
reissued @ Rs. 8 per share fully paid up.
79. A company issued 10,000 shares of Rs 10 each , payable as Rs 4 on application, 3 on allotment, 2 on 1st call and Rs 1 on 2nd call.
Amount received as follows:
On 1000 shares full amount was received.
On 500 shares , Rs 9 was received.
On 300 shares, Rs 7 was received.
On 200 shares, Rs 4 was received.
The directors forfeited 500 shares, on which less than 9 was received. All the shares were reissued at Rs 9 each fully paid. give
forfeiture entry.
Rahul applied for 6,000 shares of Rs 10 each at a premium of Rs 2 , payable as 2 on application. 3 on allotment including
premium, and 5 on 1st call. Second call of Rs 2 was not made. Rahul was allotted only 3000 shares, He could not pay allotment
and call money. His shares were forfeited and reissued at Rs 9 per share. give forfeiture entry.
80. A company issued 10,000 shares of Rs 10 each , payable as 2 on application , 4 on allotment and 4 on 1st Call. Money was
received on all shares except 300 shares did not pay allotment money and 500 shares did not pay call money. (including 300
shares who did not pay allotment money) These shares are forfeited and out of the forfeited shares 400 shares were reissued
(including 300 shares) at Rs 9 each.

ISSUE OF SHARES
81. A company issued 10,000 shares of Rs 50 each at a premium of Rs 20 per shares, payable as Rs 15 on application (including Rs
5 premium); Rs 20 on Allotment (including Rs 10 premium); balance on first and final call.
Rajesh holder of 500 shares did not pay allotment and call amount while Suresh holder of 1000 shares did not pay call money.
Their shares are forfeited and reissued at Rs 45 per share fully paid. Answer the following questions:
a. What is trhe amount received on application?
b. How much amount of application will be transferred to share capital ?
c. How much amount is received on 1st call ?
d. How much amount will be forfeited ?
e. What is the amount of capital reserve?
f. What is the balance of cash book at the end?

82. Janta Ltd, invited applications for issuing 2,00,000 equity shares of Rs. 10 at a premium of 10%. The amount was payable as
follows :On applications - Rs. 2 per share; On allotment -Rs. 3 per share ; On first and final call - balance amount. The issue was
undersubscribed to the extent of 20,000 shares. Shares were allotted to all the applicants. All calls were made and were duly
received. 'A' who applied 1,500 shares , failed to pay allotment and call money and 'B' to whom 1,200 shares were allotted did
not pay call money. Their shares were forfeited. Out of the forfeited shares 2000 shares were re - issued at Rs. 8 per share
fully paid up. Pass necessary journal entries in the books of Janta Ltd., for the above transactions. ( assume A’s full shares
reissued)
a. What is trhe amount received on application?
b. How many shares were issued to A ?
c. How much amount will be forfeited ?
d. What is the amount of capital reserve?
e. What is the balance of cash book at the end?

83. Jiya and Jyoti Ltd. Company was establishes with an authorised capital of Rs. 10,00,000 divided into shares of Rs. 10 each.
32,000 shares were issued and subscribed for by the public payable as Rs. 4 on applications, Rs. 2 on allotment, Rs. 2 on first
call and Rs. 2 on final call. The amount received in respect of these shares were as follows: On 24,000 shares full amount
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called ;On 5,000 shares Rs. 8 per share. ;On 2,000 shares Rs. 6 per share.; On 1,000 shares Rs. 4 per share. The directors
forfeited 3,000 shares on which less than Rs. 8 per share has been paid and reissued to sunil at Rs. 8 per share as fully paid.
a. How much amount is received on allotment; first call and second call
b. What is the total of cash book at the end?
CALLS IN ADVANCE
84. A company issued 25000 shares of Rs 13 each at Rs 2 premium per share , payable on Application Rs 3 ; on allotment Rs 4 ; on
first call Rs 4; on final call Rs 4. Rajan who was allotted 400 shares paid his full amount due on application, while Harish Holder
of 1000 did not pay any amount after application. His shares were forfeited and reissued at Rs 15 per share.
a. How much amount is received on allotment?
b. How much amount is received on calls?
c. In allotment entry , calls in advance will be written on …………… side of journal entry.
d. In first call , calls in advance will be …………… with …………….amount in journal entry.
85. X ltd issued 40,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share.
On application - Rs. 2 per share
On allotment - Rs. 5 share (including premium)
On 1st Call -Rs. 3 per share
On 2nd Call - Rs 2 per share
Applications were received for 55,000 shares and allotment was made on pro-rata basis as follows
i. Applicants for 20,000 shares were allotted 15,000 shares.
ii. Applicants for 30,000 shares were allotted 25,000 shares.
iii. Applicants for 5,000 shares were rejected.
Ram to whom 1,000 shares were allotted who belongs to category i. failed to pay allotment money. His shares were forfeited
after the call. Whereas Rohan who applied for 3000 in group 2; shares paid, his full amount due on allotment. Company did not
make the 2nd call as yet.
a. What amount is received on application?
b. How much amount is received on allotment?
c. How much amount is received on second call?
d. Where will calls in advance be shown in balance sheet?
e. Due to the carelessness of company, refund amount was delayed, how much penalty will be charged?

OVER SUBSCRIPTION
86. Manoj Ltd. Issued 30,000 equity shares of Rs. 10 each at a premium of Rs 1; payable as follows : Rs. 3 per share on
application ; Rs. 2 per share on allotment; Rs. 5 per share on Ist call. applications for 40,000 shares were received. Allotment
was made as follows :
List I - Applicants of 5,000 shares were in full.
List II - Applicants of 15,000 shares were allotted 10,000 shares on pro-rata
List III. Applicants of 20,000 shares were allotted 15,000 shares on pro-rata basis.
All the shareholders paid the amount due on allotment and call except X ( who was allotted 1,000 shares under List II) and Y
( who was allotted 1,500 shares under list III). They did not pay any money due on allotment and Ist cal.
a. What is the amount received on application?
b. How much amount of application will be transferred to share capital ?
c. How much amount is received on allotment ?
d. How much amount will be forfeited ?
e. What is the amount of capital reserve?
f. What is the balance of cash book at the end?
87. On 1st April 2015 Bharat Ltd made an issue of 3,00,000 equity shares of Rs. 10 each at a premium of Rs. 4per share, payable as
follows. Rs. 6 on application (including premium); Rs. 2 on allotment ; Rs. 3 on first call ; Rs. 3 on second call and final call .
Applications were received for 4,50,000 shares, of which applications for 90,000 shares were rejected and their money was
refunded. Rest of the applicants were issued shares on pro-rata basis and their excess money was adjusted towards allotment.
Ram, to whom 6,000 shares were allotted failed to pay the allotment money and first call money; Ranjan who applied for 3600
shares did not pay call money.
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a. What is the amount received on application?
b. How much amount of application will be transferred to share capital ?
c. How much amount is received on allotment ?
d. How much amount will be forfeited ?
e. What is the amount of capital reserve?
f. What is the balance of cash book at the end?
88. Alfa Ltd invited applications for 4,00,000 equity shares of Rs. 10 each on the following terms
Payable on application Rs. 5 per share payable on allotment Rs. 3 per share payable on first and final call Rs. 2 per share.
Application for 5,00,000 shares were received. It was decided
To refuse allotment to the applicants for 20,000 shares.
To allot in full to applicants for 80,000 shares.
. To allot the balance of the available shares pro-rata among the other applicants.
. To utilise excess application money in part as payment of allotment money.
One applicant, whom shares had been allotted on pro-rata basis did not pay the amount due on allotment and on the call and his
400 shares were forfeited. The shares were re-issued @ Rs. 9 per share.
a. On transfer of application ………………. Entry will be passed.
b. On receiving allotment money …………… entry will be passed
c. On forfeiture of shares …………….. entry will be passed
d. On reissue of shares ………….. entry will be passed.
e. For transfer of shares ……………. Entry is passed.

89. X Ltd. Invited applications for 18,000 equity shares of Rs. 10 each issued at a premium of 10% . The amount was payable as
follows.
On Applications Rs. 4 per share including premium
On Allotment Rs 1 .
On call balance
Applications for 27, 000 shares was received and pro- rata allotment was made to all applicants. Excess money received on applications
was adjusted towards sums due on allotment and call . Jeetu to who 900 shares were allotment failed to pay the call money. His shares
were forfeited. The forfeited shares were reissued at Rs. 8 per share as fully paid up.
a. How much amount will be adjusted on call.
b. What is the due entry of application?
c. How much amount will be received on call.
d. What is the amount of forfeiture
e. What is the amount of capital reserve.
f. What is the amount of subscribed capital in balance sheet?
90. Meena Ltd. issued 60,000 shares of Rs.10 each at a premium of Rs. 2 per share payable as Rs. 3 on Application, Rs 4 (Incl.
Premium) on allotment and the balance on 1st and final call. Applications were received for 1,02,000 shares. The Directors
resolved to allot as follows:
(1) Applicants of 60,000 shares 30,000 shares
(2) Applicants of 40,000 shares 30,000 shares
(3) Applicants of 2,000 shares Nil
Excess amount to be adjusted on allotment and if balance left after adjustment it will be refunded. Nikhil who had applied for 1,000
shares in category A, and Vishu who was allotted 600 shares in category B failed to pay the allotment money and call money.
a. How much amount will be refunded?
b. What is the due entry of application?
c. What is amount received on allotment?
d. What amount will be shown in subscribed but not fully paid capital in balance sheet?
e. What amount will be shown in subscribed and fully paid capital in balance sheet?

91. . Shashi Ltd. issued 30,000 shares of Rs. 40 each, payable as under:
Rs.3.00 on Application; Rs. 2.00 On allotment ; Rs. 2.50 on First call; Rs. 2.50 on Final call,
Applications were received for 50,000 shares and the allotments were made as under :-
To Applications for 24,000 shares ----------- Full
To Applications for 18,000 shares ----------- 6,000
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Applications for 8,000 shares ------------ Nil
Excess money received on application to be utilised on allotment and subsequent calls.
the company also allotted 800shears of Rs. 10 each Rs 2 per share premium to Promoter and 500 shares at same condition to underwriter.
a. How much amount will be refunded?
b. What is the due entry of application?
c. What is amount received on first call?
d. What amount will be shown in subscribed but not fully paid capital in balance sheet?
e. What amount will be shown in subscribed capital in balance sheet?
f. Which account is debited for share issued to promoter?
g. How will the payment to promoter and underwriter be shown in balance sheet ?