Sunil Panda – The Educator

Issue of Shares
Live Test
M.M. 20 Time 1 Hour
Q.no Marks
1. If a share of ₹10 issued at a premium of ₹2 on which the full amount has been called an ₹8 1
(including premium) paid is forfeited, the Share Capital Account will be debited with
a) ₹12 b) ₹10
c) ₹8 d) ₹6
2. If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹3 per share 1
and only 7,000 of these shares were re-issued @₹ 11 per share as fully paid up, then what is the
minimum amount that company must collect at the time of re-issue of the remaining 3,000
shares?
a) ₹ 21,000 b) ₹ 9,000
c) ₹ 16,000 d) ₹ 30,000
3. On forfeited of 100 shares of ₹50 each, ₹2,500 was credited to share forfeited account. These 1
shares were reissued at ₹25 per share fully paid-up. The amount credited to Capital Reserve
Account will be
a) ₹2,500 b) ₹5,000
c) No amount d) ₹3,000
OR
The directors of Neelkamal Ltd. forfeited 70,000 equity shares of ₹10 each, ₹10 called up, for non-
payment of final call of ₹1 per share. Half of the forfeited shares were reissued at ₹20 per share
fully paid -up. On reissue of forfeited shares, the following amount will be transferred to the
capital reserve account.
a) ₹70,000 b) ₹1,40,000
c) ₹42,000 d) ₹3,15,000

4. A company forfeited 3,000 shares of ₹10 each, on which only ₹5 per share (including ₹1 premium) 1
has been paid. Out of these few shares were re-issued at a discount of ₹1 per share were and
₹6,000 were transferred to Capital Reserve. How many shares were re-issued?
a) 3,000 shares b) 1,000 shares
c) 2,000 shares d) 1,500 shares
OR
Divya Ltd. forfeited 7,000 equity shares of ₹100 each issued at a premium of 10%, for non-
payment of first and final call of ₹40 per share. The maximum amount of discount at which these
shares can be reissued will be.
a) ₹2,80,000 b) ₹4,20,000
c) ₹4,90,000 d) ₹3,50,000
5. Subscribed Capital is 1
a) that part of authorised capital which is issued to the public for subscription
b) that part of issued capital which has been actually subscribed by the public
c) that part of subscribed capital which has been called up on the shares
d) that part of subscribed capital which has not yet been called up on the shares
6. If a Shareholder does not pay his dues on allotment for the amount due there will be a 1
a) Credit balance in the share allotment account
b) Debit balance in the share forfeiture account
c) Credit balance in the share forfeiture account
d) Debit balance in the share allotment account
7. If 10,000 shares of ₹10 each were forfeited for non-payment of final call money of ₹ 3 per share 1
and only 7,000 shares were re-issued @ ₹ 11 per share as fully paid up, then what is the amount
 of maximum possible discount that company can allow at the time of re-issue of the remaining
3,000 shares?
a) ₹ 28,000
b) ₹ 21,000
c) ₹ 9,000
d) ₹ 16,000
8. Random Ltd. took over running business of Mature Ltd. comprising of Assets of ₹ 45,00,000 and 3
Liabilities of ₹ 6,40,000 for a purchase consideration of ₹ 36,00,000. The amount was settled by
bank draft of ₹ 1,50,000 and balance by issuing 12% preference shares of ₹ 100 each at 15%
premium. Pass entries in the books of Random Ltd.
9. Sun farma Ltd, had an authorized capital of 2,00,000 equity shares of ₹10 each. The company 4
offered to the public for subscription 1,00,000 shares. The amount was payable as follows: on
application ₹3 per share; ₹5 payable on allotment and ₹ 2 on first and final call. A shareholders
holding 500 shares failed to pay the Call Money. His shares were Forfeited
Present the share capital in the balance sheet of the company as per schedule III of the
companies act 2013. Also prepare notes to accounts.
10. SAMAY Ltd. invited applications for issuing 50,000 equity shares of ₹10 each at par. The amount 6
payable as follows:
On application ₹2 per share
On allotment ₹5 per share
On First and final call ₹3 per share
The issue was oversubscribed 3 times. Application for 33.33% shares were rejected and money
refunded allotment was made to the remaining applicants as follows
Category Applied Allotted
50,000 30,000
50,000 20,000
Excess money on applications was adjusted in allotment. Ginni a shareholder holding 1200 shares
belonging to first category, failed to pay the allotment money her share forfeited immediately
after allotment and re-issued same for ₹9 per share fully paid up. First call was made and all the
Money duly received except Mahesh a shareholder holding 200 shares.
Pass necessary journal entries in the books of SAMAY Ltd