ISSUE OF SHARES

Concept Capsule:

1. A B C Co. limited issued 25000 equity shares of ₹ 100 each payable as follows:
Share Application ₹ 25; Share Allotment ₹ 35; Share 1st Call ₹ 15; and Final Call ₹ 25. All the
money were duly received. Pass Journal entries
2. Music World Co Limited with an Authorized Capital of 10000Equity Shares of ₹ 1,000 each.
The Company issued 5000 Equity Shares for public subscription. The amount was payable as
follows:
Share Application ₹ 250; Share Allotment ₹ 350; Share 1st Call ₹ 300; and Final Call ₹ 100. All
the money were duly received. Pass Journal entries.
3. Paul Co. limited issued 50000 equity shares of ₹ 100 each payable as follows:
Share Application ₹ 25; Share Allotment ₹ 35; Share 1st Call ₹ 15; and Final Call ₹ 25. All the
money were duly received. Pass Journal entries including Cashbook.
4. Reliance Limited with an Authorized Capital of 15000 Equity Shares of ₹ 50 each. The
Company issued 10000 Equity Shares for public subscription. The amount was payable as
follows:
Share Application ₹ 25; Share Allotment ₹ 15; Share Call ₹ 10; All the money were duly
received. Pass Journal entries including Cash Book.
Over Subscription
5. ST limited issued 90000 equity shares of ₹ 100 each payable as follows:
Share Application ₹ 25; Share Allotment ₹ 20; Share 1st Call ₹ 30; and balance on Final Call.
The Company received application money for 95000 Equity shares, the excess application
money received was refunded. All the money were duly received. Pass Journal entries.
6. PT limited issued 25000 equity shares of ₹ 50 each payable as follows:
Share Application ₹ 10; Share Allotment ₹ 20; and balance on Call. The Company received
application money for 30000 Equity shares, the excess application money received was
refunded. All the money were duly received. Pass Journal entries including Cash book.
7. Philips India limited issued 60000 equity shares of ₹ 10 each payable as follows:
Share Application ₹5; Share Allotment ₹3; Share 1st Call ₹ 1; and balance on Final Call. The
Company received application money for 70000 Equity shares, the excess application money
received was refunded. All the money were duly received. Pass Journal entries.
8. PT limited issued 25000 equity shares of ₹ 50 each payable as follows:
Share Application ₹ 10; Share Allotment ₹ 20; and balance on Call. The Company received
application money for 30000 Equity shares, the excess application money received was
transferred to Allotment. All the money were duly received. Pass Journal entries including
Cash book.
9. Philips India limited issued 60000 equity shares of ₹ 10 each payable as follows:
Share Application ₹5; Share Allotment ₹3; Share 1st Call ₹ 1; and balance on Final Call. The
Company received application money for 70000 Equity shares, the excess application money
received was transferred to Allotment. All the money were duly received. Pass Journal
entries.
Under Subscription and Calls – In - Arrear
10. ABCL issued 95000 equity shares of ₹100 each payable as follows:
Application ₹ 20, Allotment ₹ 30, First Call ₹ 20 and Final Call ₹ 30. The Company received
application for 90000 equity shares. All the money were duly received except Mr. S holding
200 shares failed to pay allotment, Mr. T holding 300 shares failed to pay 1st Call money, Mr.
U holding 300 shares failed to pay Final Call Money. Pass Journal Entries.

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11. ABCL issued 95000 equity shares of ₹100 each payable as follows:
Application ₹ 20, Allotment ₹ 30, First Call ₹ 20 and Final Call ₹ 30. The Company received
application for 90000 equity shares. All the money were duly received except Mr. S holding
200 shares failed to pay allotment, Mr. T holding 300 shares failed to pay 1st Call money, Mr..
U holding 300 shares failed to pay Final Call Money. Pass Journal Entries including Cash
Book.
12. Ajay Limited issued 19000 equity shares of ₹50 each payable as follows:
Application ₹ 10, Allotment ₹ 15, First Call ₹ 15 and Final Call ₹ 10. The Company received
application for 20000 equity shares. The excess of which was refunded. All the money were
duly received except Mr. G holding 300 shares failed to pay failed to pay 1st Call money, Mr X
holding 100 shares failed to pay Final Call Money. Pass Journal Entries.
13. Ajay Limited issued 19000 equity shares of ₹50 each payable as follows:
Application ₹ 10, Allotment ₹ 15, First Call ₹ 15 and Final Call ₹ 10. The Company received
application for 20000 equity shares. The 50% of the excess was refunded and the remaining
was transferred to allotment. All the money were duly received except Mr. G holding 300
shares failed to pay failed to pay 1st Call money, Mr. X holding 100 shares failed to pay Final
Call Money. Pass Journal Entries.
14. Mukta Arts Limited issued 40000 equity shares of ₹100 each payable as follows:
Application ₹ 20, Allotment ₹ 40, First Call ₹ 10 and balance on Final call. The Company
received application for 39000 equity shares. All the money were duly received except Mr.
holding 300 shares failed to pay failed to pay 1st Call money, while Mr. X holding 200 shares
paid all the money along with allotment. Pass Journal Entries.
15. Aman Limited issued 70,000 Equity shares of 100 each payable as follows:
Share Application ₹ 20; Share Allotment ₹ 30 ( including Premium ₹ 10 ); First Call ₹ 30 and
Balance on Final Call . All the money were duly received except Miss Sidra holding 500
shares failed to pay final call money. Pass Journal entries in the books of Company including
Cash transactions.
16. G ltd issued 10,000 Equity Shares of ₹ 50 each at a premium of 10% payable along with
Allotment. The amount was payable as follows:
Application ₹ 10; Allotment ₹ 20; First Call ₹ 15 and balance on Final call. The Company
received application money on 120000 Equity Shares. The excess Application money was
duly refunded. All money were duly received except Mr. C holding 150 shares failed to pay
Allotment money while Mr. D holding 200 shares paid all the money due till Final Call along
with Allotment. Mr. C paid all the money dues paid along the final Call. Pass the Journal
Entries.
Calls In Advance
17. P ltd issued 20,000 Equity Shares of ₹ 10 each at a premium of 10% payable along with
Allotment. The amount was payable as follows:
Application ₹ 3; Allotment ₹ 2 ; First Call ₹ 4 and balance on Final call. The Company received
application money on 25000 Equity Shares. The excess Application money was duly
refunded. All money were duly received except Mr. X holding 300 shares failed to pay
Allotment money while Mr. Y holding 400 shares paid all the money due till Final Call along
with Allotment. Mr. X paid all the money dues paid along the final Call. Pass the Journal
Entries.
18. Z Ltd issued 50000 Equity Shares of ₹ 10 each at a premium of ₹ 2 per Share payable as
follows:
Application ₹ 3; Allotment ₹ 6 including Premium ; Share Call ₹ 3. The Company received
application money on 60000 Equity Shares. The excess Application money was duly

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 refunded. All money were duly received except One shareholder holding 400 shares paid the
Call the money along with Allotment. Another shareholder holding 600 shares failed to pay
the Call Money. Pass the Journal Entries.
Forfeiture and Re- issue of Shares:
19. K Ltd issued 25000 equity Shares of ₹ 1,000 each payable as follows;
Application ₹ 250; Allotment ₹ 350, 1st Call ₹ 250 and balance on Final call. All the money
were duly received except Mr. A holding 200 shares failed to pay Allotment money, Mr. B
holding 300 shares failed to pay 1st call Money and Mr. C holding 300 shares failed to final
call money. All theses shares were forfeited and were reissued at ₹ 990 per share. Pass
Journal Entries in the books of the Company.
20. Mohan Limited issued 40000 Equity Shares of ₹ 120 each payable as follows:
Application ₹ 40; Allotment ₹ 30, 1st Call ₹ 20 and balance on Final call. All the money were
duly received except Mr. S holding 200 shares failed to pay Allotment money, Mr holding
300 shares failed to pay final call money. All theses shares were forfeited and were reissued
at ₹ 115 per share. Pass Journal Entries in the books of the Company.
21. Manufacturing Limited Issued 25000 of ₹ 100 each at a premium of ₹ 20 per share payable
as follows;
Application ₹ 40; Allotment ₹ 50 (including Premium) , 1st Call ₹ 20 Final call ₹ 10. The
company received money for 27000 Equity Shares. 500 Shares were refunded while balance
of excess was transferred to Allotment. All the money were duly received except Mr. A
holding 300 shares failed to pay 1st call Money and Mr. C holding 300 shares failed to final
call money. All these shares were forfeited and were reissued at ₹ 48 per share. Pass Journal
Entries in the books of the Company.
22. ABC Co Limited issued 20000 Equity Shares of ₹ 100 each payable as follows:
Application ₹ 20; Allotment ₹ 15 (including Premium of ₹ 5). 1st Call ₹ 40 and final Call of ₹
30. All the money were duly received except Mr. Y holding 200 shares failed to pay 1st Call
money and his shares were forfeited after the 1st Call. Final call was made Mr. Z holding 300
shares failed to pay final call and his shares were forfeited after the final call. These shares
were forfeited after the final call. These shares were reissued to Mr. X @ 110 per Share. Pass
Journal entries including Cash Book.
23. X Co Limited issued 15000 Equity Shares of ₹ 10 each payable as follows:
Application ₹ 2; Allotment ₹ 3 (including Premium of ₹1). 1st Call ₹ 4 and final Call of ₹ 2. All
the money were duly received except Mr. A holding 150 shares failed to pay 1st Call money
and his shares were forfeited after the 1st Call. Final call was made Mr. B holding 300 shares
failed to pay final call and his shares were forfeited after the final call. These shares were
forfeited after the final call. These shares were reissued to Mr. X @ 8 per Share. Pass Journal
entries including Cash Book.
24. Vicco Ltd issued 20000 Equity shares of ₹ 50 each at a premium of ₹ 5 per share payable
along with Allotment. The amount was payable as follows:
₹ 13 on Application; ₹ 12 on Allotment ( including Premium ); ₹ 20 on 1st Call and balance in
final Call. The company received application money for 25000 Equity shares the excess of
which was refunded. Mr G holding 300 shares failed to pay allotment money Mr. R holding
150 shares failed to pay 1st call money and Mr. D holding 400 shares failed to pay final Call
Money. These Shares were forfeited and were reissued @ 45 per share. Pass Journal Entries.
25. P Co Limited issued 75000 Equity Shares of ₹ 10 each payable as follows:
Application ₹ 3; Allotment ₹ 3 (including Premium of ₹2). 1st Call ₹ 4 and balance on final
Call. The Application money was received for 70000 Equity shares. All the money were duly
received except Mr. A holding 200 shares failed to pay Allotment money, Mr. B holding 300

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 shares failed to pay 1st Call money, Mr. holding 500 shares failed to pay final call. These
shares were forfeited after the final call. These shares were reissued to Mr. X @ per Share.
Pass Journal entries including Cash Book.
26. ABC Co Limited issued 90000 Equity Shares of ₹ 20 each payable as follows:
Application ₹ 6; Allotment ₹ 8 (including Premium of ₹ 2). 1st Call ₹ 3 and balance final Call,
The company received Application money for 80000 shares. All the money were duly
received except Mr. Y holding 300 shares failed to pay Allotment money and his shares were
forfeited after the Allotment money. Mr Y holding 500 shares failed to pay 1St Call Money
and his shares were forfeited after 1st Call, Mr Z holding 300 shares failed to pay Final call
money and his shares were forfeited after the final call. Out of the forfeited shares 1000
shares were reissued to Mr. X @ 16 per Share taking all of X and Y and balance from Z . Pass
Journal entries.
27. Old Limited invited application for 20000 Equity shares of ₹ 50 each at a premium of ₹ 5
each. The amount was payable as follows:
On Application ₹ 12 ; On Allotment ₹ 20 and Balance on call. The public applied for 16000
Equity Shares and these shares were allotted to them. All these Shares was received except
from kalayan holding 800 shares who paid only application money, Soumen holding 700
shares paid Application and Allotment money only. All these shares were forfeited after the
Call. Out of these forfeited shares 1000 shares were (Whole of Kalayan and balance from
Soomin ) were reissued to Ananta on payment of ₹ 40 per share as fully paid up. Pass Journal
entries.
28. G Ltd invited Applications for 1000 Equity Shares of ₹ 100 each which was payable as
follows:
Application ₹ 25; Allotment ₹ 30 (Including Premium); 1st Call ₹ 25 and Final Call ₹ 25.
The Company received Application money for 1250 Shares. They allotted 1000 shares and
the excess Application Money was refunded. The Company received money till 1st Call. All
the money were duly received except a share holding 50 shares failed to pay the allotment
as well 1st call money another share holding 30 shares failed to pay 1st call money. These
shares were forfeited after the 1st call and were reissued to Mr. X for the payment of 80 per
share. Pass Journal Entries.
Interest On Calls in Arrear and Calls In Advance:
29. On 1st April 2022 Mahindra Limited issued 40000 Equity shares of ₹ 10 each at a premium of
20% payable as follows:
Application Money ₹ 4 on 01/04/22; Allotment Money ₹ 5(Including Premium) on 01/05/22;
1St Call Money ₹ 2 on 01/08/22; Final call Money ₹ 1 on 01/09/22.
Application for 42500 equity Shares were received. Excess Application money were
refunded. Kumud to whom 2000 were allotted paid Call money along with allotment.
Ananya failed to pay allotment money om 1000 shares while Balraj failed to pay final Call
Money. They all cleared aheir dues on 15/09/22, Pass Journal entries. The directors adopted
Table ‘A’.
30. S Ltd 20000 Equity shares of ₹ 25 each payable as follows:
On Application ₹ 8; On Allotment ₹ 8; on 1st Call ₹ 4(payable after 2months from the date of
Allotment). On Final call ₹ 3( payable after 3 months from the date of 1st Call). The company
received Application for 22500 shares and the excess Application money was refunded
immediately. All the calls were duly made. One Shareholder holding 1500 shares failed to
pay allotment money which he paid with 1st Call money together with interest on Calls in
Arrear and another shareholder holding 1000 shares failed to pay 1st Call Money which he
paid with the Final call money together with Interest on Calls In Arrear, Pass Journal Entries.

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31. S Ltd invited Applications for 40000 Equity Shares of ₹ 10 each which was payable as follows:
Application ₹ 2; Allotment ₹5 (Including Premium ₹ 2 per share ); 1st Call ₹ 2 and Final Call ₹
3.
The Company received Application money for 60000 Shares. Allotment was made prorate to
the Applicants for 48000 shares, the remaining application money being refunded. All the
money were duly received except a share holding 1600 shares failed to pay the allotment
money another share holding 2000 shares failed to pay two calls money. These shares were
forfeited and were reissued to Mr. X for the payment of 12 per share. Pass Journal Entries.
Prorata Allotment
32. X Ltd invited Applications for 200000 Equity Shares of ₹ 10 each at a premium of ₹ 2 per
share which was payable as follows:
Application ₹ 2; Allotment ₹5 (Including Premium); 1st Call ₹ 2 and Final Call ₹ 3.
The Company received Application money for 300000 Shares. Allotment was made prorate
to the Applicants for 240000 shares, the remaining application money being refunded. All
the money were duly received except a Ram who applied for 9600 shares failed to pay the
allotment money and Shyam holding 12000 shares failed to pay two calls money. These
shares were forfeited and were reissued to Mr. X for the payment of 8 per share. Pass
Journal Entries including Cash Book.
33. ZS Ltd invited Applications for 40000 Equity Shares of ₹ 10 each which was payable as
follows:
Application ₹ 2; Allotment ₹ 3 1st Call and Final Call ₹ 5.
The Company received Application money for 60000 Shares. Allotment was made prorate to
the all Applicants. All the money were duly received except Mr. A holding 4000 shares failed
to pay the allotment money another share holder who applied 6000 shares failed to pay 1st
and final call money. These shares were forfeited and were reissued to Mr. X for the
payment of ₹ 9 per share. Pass Journal Entries.
34. S Ltd invited Applications for 40000 Equity Shares of ₹ 10 each at a premium of ₹ 2 per share
which was payable as follows:
Application ₹ 6(including Premium); and balance on Allotment.
The Company received Application money for 50000 Shares. Allotment was made prorate to
all the Applicants. All the money were duly received except a share holding 8000 shares
failed to pay the allotment money These shares were forfeited and were reissued to Mr. X
for the payment of ₹ 70,000 as fully paid up. Pass Journal Entries.
35. Crimptom Ltd invited Applications for 50000 Equity Shares of ₹ 10 each at a premium of ₹ 5
which was payable as follows:
Application ₹ 3; Allotment ₹6 (Including Premium); 1st Call ₹ 3 and Final Call ₹ 3.
The Company received Application money for 90000 Shares. Allotment was made prorate to
the Applicants for 75000 shares, the remaining application money being refunded. All the
money were duly received except Antasari holding 200 shares failed to pay the allotment
and 1st Call and his share was forfeited after 1st Call money Mr Naresh holding 600 shares
failed to pay two calls money and his shares were forfeited after Final Call money .
Subsequently 500 shares ( including all of Antasari) of the forfeited shares were reissued to
Mr. X for the payment of ₹ 9 per share. Pass Journal Entries.
36. Bengal Ltd was registered with an Authorised Capital of ₹ 5,00,000 divided into 30000
Equity shares of ₹ 10 each. The Company made an issue of 15000 Equity Shares of ₹ 10 each
at a premium of ₹ 5 per share payable as follows:
On application ₹ 5 per share( including ₹ 2 as premium; On Allotment ₹ 6( including
Premium ₹ 3 per share); On 1st Call ₹ 2 per share and balance in Final Call.

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 All the money were duly received for 24000 Equity Shares . No Allotment was made to the
Applicants for 4000 shares and the remaining shares were allotted to them on prorata basis.
Mr. A who Applied for 120 shares failed to pay Allotment Money Mr B who 80 shares failed
to pay 1st Call money and Mr. C to whom 45 shares were allotted failed to pay final call
money. These shares were forfeited and of these 160 shares (all of A and balance from B)
were reissued to Mr D @ ₹ 12 per share. Pass Journal entriess.
37. Ganesh Trading Co Ltd Invited Application for 400000 Equity Shares of 10 Each on the
following terms:
Application ₹ 5; Allotment ₹3; 1st Call and Final Call ₹ 3 per Share.
Applications for 500000 shares were received. It was decided
i) To refuse in full to applicants for 20000 shares.
ii) To Allot in full to applicants for 80000 shares.
iii) To allot the balance of the available shares on prorate.
iv) To utilize the excess Application Money towards allotment.

Mt A holding 300 shares to whom full Allotment was made failed to pay allotment money,
Mr. B holding 400 shares to whom shares were allotted on Prorata basis failed to pay
allotment money. These shares were forfeited after the final call and were reissued @ ₹ 9
per share. Pass Journal Entries.
38. Krishna Trading Co Ltd invited Application for 20000 Equity Shares of ₹ 20 Each at a premium
of 20% on the following terms:
Application ₹ 4; Allotment ₹5(including Premium); 1st Call ₹ 2 and Final Call ₹ 1 per Share.
Applications for 26000 shares were received. It was decided
i) To refuse in full to applicants for 1000 shares.
ii) To Allot in full to applicants for 10000 shares.
iii) To allot the Applicant of 9000 shares – 6000 shares were allotted.
iv) To allot the Applicant of 6000 shares – 4000 shares were allotted.

Applicants for 200 shares in Category (II) and Applicants for 150 shares in Category (iii) failed
to pay allotment money, and holder of 200 shares under category (iv) failed to pay 1st Call
money. These shares were reissued @ ₹ 7 per share. Pass Journal Entries.
39. Pass Journal Entries for Forfeiture Reissue and Capital reserve:
i) A limited Company forfeited 100 Equity Shares of the face Value of ₹ 10 each, ₹ 6
per share Called up for non-Payment of First Call of ₹ 2 per share. The forfeited
shares were subsequently reissued as fully paid @ ₹ 7 per share. Pass Journal
entries.
ii) A limited Company forfeited 100o Equity Shares of the face Value of ₹ 10 each, ₹ 8
per share Called up for non-Payment of Allotment of ₹ 5 per share including
Premium of ₹ 2. Of these 800 shares were reissued @ ₹ 7 per share as 8 called up .
Pass Journal entries.
iii) A limited Company forfeited 1500 Equity Shares of the face Value of ₹ 10 each, ₹7
per share Called up for non-Payment of Allotment money of ₹ 4 per share including
premium of ₹ 1. Of the forfeited shares 1000 were subsequently reissued at ₹₹ 6 per
share as 7 called up. Pass Journal entries.
iv) Nidhi Limited issued 2000 Equity Shares of ₹ 100 Each. All the money was received
except on 200 shares on which only 90 per share was received. These shares were
forfeited and out of forfeited shares 100 shares were reissued at₹ 80 per share as
fully paid up. Pass Journal Entries.
v) D Ltd forfeited 500 Shares of ₹ 100 Each issued at 10% premium (₹ 90 called up) on
which the shareholders did not pay ₹ 3 on Allotment (including Premium) and 1st Call
of ₹ 20 each. Out of these 300 shares were issued as fully paid up for ₹ 80 per share

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 and 100 shares as fully paid up at ₹ 120 per share at different intervals of time. Pass
Journal Entries.
40. National Chemicals Ltd Forfeited 500 Shares of ₹ 100 each issued at 10 premium to be paid
at the time of Allotment on Which the First Call of ₹ 30 per share was not received the
second and Final call of ₹ 20 per share was not yet called up. Give Journal entries regarding
the forfeiture and reissue of shares in each of the following cases:
i) If 200 of these shares were reissued at ₹ 80 paid up for₹ 90 per share.
ii) If 200 of these shares were reissued at ₹ 80 called up for₹ 90 per share.
iii) If 200 of these shares were reissued at ₹ 80 paid up for ₹70 per share.
iv) If 200 of these shares were reissued at ₹ 80 paid up for ₹30 per share.
41. R Ltd Forfeited 500 Shares of ₹ 100 each issued at 10 premium to be paid at the time of
Allotment on Which Allotment money of ₹ 30 per share (including Premium) and the First
Call of ₹ 30 per share were not received the second and Final call of ₹ 20 per share was not
yet called up. Give Journal entries regarding the forfeiture and reissue of shares in each of
the following cases:
i) If 200 of these shares were reissued at ₹ 80 paid up for₹ 90 per share.
ii) If 200 of these shares were reissued at ₹ 80 called up for₹ 80 per share.
iii) If 200 of these shares were reissued at ₹ 80 paid up for ₹70 per share.
iv) If 200 of these shares were reissued at ₹ 80 paid up for ₹50 per share.
ISSUE OF SHARES OTHER THAN CASH
42. X Ltd purchased a Machinery from Y Ltd for ₹ 18,00,000 payable by issue of Equity Shares of
₹ 100 per Share. Pass Journal Entries in the books of X Ltd if shares are issued i) At Par and ii)
At a premium of 20%.
43. Abbas Ltd Purchased a Furniture From Rohan Ltd for ₹ 3,50,000. ₹ 75,000 was paid by
cheque and the balance by Equity shares of ₹ 10 each at a premium of 10% were issued.
Pass Journal Entries.
44. Roy Ltd purchased a Building from Y Ltd for ₹ 24,00,000 payable by issue of Equity Shares of
₹ 100 per Share. Pass Journal Entries in the books of X Ltd if shares are issued i) At Par and ii)
At a premium of 20%.
45. Gabbar Ltd Purchased a Machinery From Kalia Ltd for ₹ 7,35,000. ₹ 75,000 was paid by
cheque and the balance by Equity shares of ₹ 10 each at a premium of 10% were issued.
Pass Journal Entries.
46. Sunshine Ltd purchased a running business from Moon Ltd for ₹ 15,00,000 payable
12,00,000 as fully paid up equity shares and the balance by cheque. The assets acquired
were as follows:
Plant and Machinery ₹ 6,00,000 Stock ₹ 2,00,000 Building ₹ 4,00,000
Cash ₹ 3,00,000 Sundry Debtors 1,60,000 Creditors ₹ 60,000.
Pass Journal Entries.
47. Moon Light Ltd purchased a running business from Moon Ltd for 30000 Equity shares of 100
each at Par The assets and Liabilities acquired were as follows:
Plant and Machinery ₹ 7,00,000 Stock ₹ 9,00,000 Building ₹12,00,000
Cash ₹ 3,00,000 Creditors ₹2,00,000.
Pass Journal Entries.
48. Basundhara Ltd was formed by taking over the running business of Barman Trading Co. for ₹
12,00,000. The Assets and Liabilities taken over by the company were as follows:
Land and Building ₹ 6,00,000; Furniture and Fixture ₹ 1,50,000; Stock In Trade ₹ 4,80,000;
Debtors ( Net Realisable Value ₹ 3,20,000) ₹ 3,50,000; Creditors ₹ 2,00,000.
The Purchase Consideration was paid by issue of sufficient number of Equity Shares of ₹ 10
each at a premium @ 20%. The company also issued 5000 Equity Shares to its promoters as
the remuneration of the services rendered by them at par. Pass Journal Entries in the books
of Basundhara Ltd.

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49. Jamuna Ltd. was formed by taking over the running business of Jalan Textile Ltd for ₹
18,00,000. The Assets and Liabilities taken over by the company were as follows:
Land and Building ₹ 7,50,000; Plant and Machinery ₹6,00,000 Furniture and Fixture ₹
30,000; Stock In Trade ₹ 5,50,000; Debtors ( Net Realisable Value ₹ 3,20,000) ₹ 3,40,000;
Creditors ₹ 4,50,000; Employees Provident Fund ₹ 50,000.
The Purchase Consideration was paid by the company i) by Bank Draft ₹ 7,00,000 ii) issue of
sufficient number of Equity Shares of ₹ 10 each at a premium @ 10%. The company also
issued 1,00,000 Equity Shares to its promoters as the remuneration of the services rendered
by them at par. Pass Journal Entries in the books of Jamuna Ltd.
50. Blue Chip issued 2000 shares of ₹ 100 each credited as fully paid to the promoters for their
services and issued 1000 shares of ₹ 100 each credited as fully paid to the underwriter for
their underwriting services. Journal Entries.
51. X Ltd issued 10000 shares of ₹ 100 each at a premium of ₹ 15 per share. 90% of the issue
was underwritten by the Broker and Company at a commission of 1% on the nominal face
value. Applications were received for 8000 shares and Allotment was fully made. All the
moneys due from allottees were received in one instalment. The accounts with Booker and
Co were settled. Pass Journal Entries.