Issue OF SHARE CAPITAL PRACTISE QUESTIONS

1
Day-4
OVER SUBSCRIPTION (PRO RATA allotment)
Q.28 Khushbu Ltd. Co. issues 22000 equity shares of face value of ₹20 . The arrangements
for payment are:
On Application ₹4
On Allotment ₹10
On First and final call ₹6
The company receives applications for 50,000 shares. It deals with them in the following
manner:
1. Applicants of 10,000 shares receive the full allotment.
2. The applicants for 20,000 shares will receive 12,000 shares
3. Reject the remaining applications.
The company duly receives the entire amount. Pass necessary journal entries.
Q.29 Kartik Ltd. Co. issues 40000 equity shares of face value of ₹10 . The arrangements
for payment are:
On Application ₹4
On Allotment ₹4
The company receives applications for 2,00,000 shares. It deals with them in the following
manner:
2. The applicants for 25000 shares will receive 20,000 shares
3. The applicants for 135000 shares were allotted 10,000 shares.
2
Q.30 Riya ltd Ltd issued 50,000 shares of Rs.10 at premium of 20% each payable as Rs 2 per
share on application, Rs 3 per share on allotment and Rs 5 on first and final call. Applications
were received for 60,000 It was decided that
(i)Refuse allotment to the applicants of 10,000 shares.
(ii)Allot 20,000 shares to Mohan who had applied for similar number.
(iii)Allot the remaining shares on pro-rata basis.
Q.31 Sheena ltd. issued 34,000 shares of Rs.10 at premium of 20% each payable as Rs 7 per
were received for 1,00,000 It was decided that
(ii)Allot 20,000 shares to applicants of 30,000 shares
(iii)Allot 10,000 shares to applicants of 50,000 shares.
(iv) full allotment to 4000 shares and Reject the rest.
The company duly receives the entire amount. Pass necessary journal entries
Q.32 Rajiv Ltd issued 60,000 shares of Rs 10 each at a discount of Rs 2 per share payable as Rs
3 on application, Rs 2 on allotment (including discount) and balance on the first and final call.
Applications were received for 1,02,000 shares.
The directors resolved to allot as follows
(i)Applicants of 60,000 shares — 30,000 shares
(ii) Applicants of 40,000 shares — 30,000 shares
(iii)Applicants of 2,000 shares — Nil
Q.33 Khushi Ltd. Co. issues 100000 equity shares of face value of ₹10 on 1st June 2018 at
20% discount. The arrangements for payment are:
3
June 1, 2018: On Application ₹7

July 1, 2018: On Allotment ₹2
September 1, 2018: On First and final call ₹1
The company receives applications for 285000 shares. It deals with them in the following
manner:
1. Applicants for 25000 shares receive the full allotment.
2. The applicants for 225000 shares receive one share for every three shares applied
for on pro-rata basis.
3. It rejects the applications for 35000 shares.

OVER SUBSCRIPTION (PRO RATA allotment)
HOMEWORK
Q.28 Khushbu Ltd. Co. issues 20,000 equity shares of face value of ₹10 . The
arrangements for payment are:
On Application ₹2
On Allotment ₹5
The company receives applications for 40,000 shares. It deals with them in the following
manner:
5. The applicants for 10,000 shares will receive 8,000 shares
4
Q.29 Kartik Ltd. Co. issues 42,000 equity shares of face value of ₹20 . The arrangements
for payment are:
On Application ₹8
On Allotment ₹7
manner:
6. The applicants for 35000 shares will receive 20,000 shares
7. The applicants for 25000 shares were allotted 2,000 shares.
Q.30 Riya ltd Ltd issued 60,000 shares of Rs.10 at premium of 20% each payable as Rs 3 per
were received for 70,000 It was decided that
(ii)Allot 20,000 shares to Mohan who had applied for similar number.
(iii)Allot the remaining shares on pro-rata basis.
Q.31 Sheena ltd. issued 35,000 shares of Rs.10 at premium of 20% each payable as Rs 6 per
were received for 1,20,000 It was decided that
(ii)Allot 10,000 shares to applicants of 20,000 shares
(iii)Allot 20,000 shares to applicants of 70,000 shares.
(iv) full allotment to 5000 shares and Reject the rest.
Q.32 Rajiv Ltd issued 70,000 shares of Rs 10 each at a discount of Rs 2 per share payable as Rs
3 on application, Rs 2 on allotment (including discount) and balance on the first and final call.
Applications were received for 1,02,000 shares.
The directors resolved to allot as follows
(i)Applicants of 60,000 shares — 30,000 shares
5
(ii) Applicants of 40,000 shares — 30,000 shares

(iii)Applicants of 2,000 shares — Nil
Q.33 Khushi Ltd. Co. issues 100000 equity shares of face value of ₹10 on 1st June 2018 at
20% discount. The arrangements for payment are:
June 1, 2018: On Application ₹6

July 1, 2018: On Allotment ₹1
September 1, 2018: On First and final call ₹3
manner:
4. Applicants for 50000 shares receive the full allotment.
5. The applicants for 240000 shares receive one share for every four shares applied
for on pro-rata basis.
6. It rejects the applications for 20,000 shares.


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1

1. Applicants of 10,000 shares receive the full allotment.

2. The applicants for 20,000 shares will receive 12,000 shares

3. Reject the remaining applications.

1. Applicants of 10,000 shares receive the full allotment.

2. The applicants for 25000 shares will receive 20,000 shares

3. The applicants for 135000 shares were allotted 10,000 shares.

4. Reject the remaining applications.

June 1, 2018: On Application ₹7

1. Applicants for 25000 shares receive the full allotment.

3. It rejects the applications for 35000 shares.

OVER SUBSCRIPTION (PRO RATA allotment)

4. Applicants of 20,000 shares receive the full allotment.

5. The applicants for 10,000 shares will receive 8,000 shares

6. Reject the remaining applications.

5. Applicants of 20,000 shares receive the full allotment.

6. The applicants for 35000 shares will receive 20,000 shares

7. The applicants for 25000 shares were allotted 2,000 shares.

8. Reject the remaining applications.

(ii) Applicants of 40,000 shares — 30,000 shares

June 1, 2018: On Application ₹6

4. Applicants for 50000 shares receive the full allotment.

6. It rejects the applications for 20,000 shares.

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