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    XYZ Ltd issued a prospectus offering 2,000 shares at Rs. 10 each with a Rs. 4 premium payable in installments. They received applications for 3,000 shares and allotted 2,400 shares pro rata, using excess application money for the allotment amount. X was allotted 40 shares but failed to pay and was forfeited for non-payment of calls. Y applied for 72 shares but failed to pay two calls and was also forfeited, with 80 of the forfeited shares sold to Z as fully paid for Rs. 9 per share.

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    XYZ Ltd issued a prospectus offering 2,000 shares at Rs. 10 each with a Rs. 4 premium payable in installments. They received applications for 3,000 shares and allotted 2,400 shares pro rata, using excess application money for the allotment amount. X was allotted 40 shares but failed to pay and was forfeited for non-payment of calls. Y applied for 72 shares but failed to pay two calls and was also forfeited, with 80 of the forfeited shares sold to Z as fully paid for Rs. 9 per share.

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    © All Rights Reserved
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    4 views1 page

    Payable: Share

    Uploaded by

    milanagarwal3456
    XYZ Ltd issued a prospectus offering 2,000 shares at Rs. 10 each with a Rs. 4 premium payable in installments. They received applications for 3,000 shares and allotted 2,400 shares pro rata, using excess application money for the allotment amount. X was allotted 40 shares but failed to pay and was forfeited for non-payment of calls. Y applied for 72 shares but failed to pay two calls and was also forfeited, with 80 of the forfeited shares sold to Z as fully paid for Rs. 9 per share.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    XYZ Ltd. issued a prospectus inviting applications for 2,000 shares of ?

    10 each at a premium of
    R4 per share, payable as:
    On Application ?6 (including 1premium), +
    On Allotment ?2(including 1prernium),
    On First Call 3 (including 1premium), 21!
    On Second and Final Call
    ?3(including 1 premium). sa
    Applications were received for 3,000 shares and pro rata allotment was made on the applications for
    2,400 shares. It was decided toutilise excess application money towards the amount due on allotment.
    Xto whom 40 shares were allotted, failed to pay the allotment money and on his
    subsequent failure to
    pay the first call, his shares were forfeited.
    Y, who applied for 72 shares failed to pay the two calls and on his such failure, his shares were
    forfeited.
    Of the sthares forfeited, 80 shares were sold to Z credited as fully paid-up for 9 per share, the whole of
    Ys shares being included. Prepare Journal,Cash Book and the Balance Sheet.

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