Q1:

Q2:

Q3: Rohit Limited issued 2,000, 9% Debentures of 100 each at 95 per debenture. 9%
Debentures account will be credited by:

(a) 1,90,000 (b) 1,10,000

(c) 2,00,000 (d) 10,000

Q4: Which of the following statements is incorrect?

(a) Interest on debentures is a charge and not an appropriation.

(b) Debentures can be issued at discount.

(c) Debenture holders do not have voting rights.

(d) Debentures cannot be converted into shares.

Q5: That part of the authorised capital which is actually issued to the public for
subscription is called:

(a) Subscribed capital

(b) Issued capital

(c) Authorised capital

(d) Reserve capital

Q6: Zinki Limited forfeited a share of 100 issued at a premium of 20% for non-payment
of first call of 30 per share and final call of 10 per share. The minimum price at which
this share can be reissued is:

(a) 40 (b) 60

(c) 20 (d) 100

Q7:
Q8:

Q9:
Q10:

Q11: Annex Ltd. issued 1,00,000 shares of 10 each at a premium of 10% to the public
for subscription. The whole amount was payable on application. Applications were
received for 3,00,000 shares and the board decided to allot shares to all shareholders
on pro-rata basis.
Pass necessary journal entries for the above transactions in the books of Annex Ltd

Q12: Pass necessary journal entries for the issue of debentures in the following
cases:
(i) Issued 3000, 9% debentures of 100 each at par, redeemable at a premium of 15 per
debenture.
(ii) Issued 2000, 9% debentures of 100 each at 10% premium and redeemable at a
premium of 5%.
(iii) Issued 75,00,000, 9% debentures at 10% discount, redeemable at par
Q13:

Q14:

Q15: Pass necessary journal entries for the forfeiture and reissue of shares in the
following cases:

(i) CC Ltd. forfeited 10,000 shares of 10 each, 8 called up, for non-payment of
allotment money of 3 per share and first call of 3 per share. Out of these, 2000 shares
were reissued for 7 per share, 8 paid up.
(ii) GG Ltd. forfeited 2000 shares of 10 each fully called up, issued at a premium of 10%
on which only application money of 3 per share was received. Out of these, 500 shares
were re-issued at 11 per share, fully paid up.

Q16:

DF Ltd. invited applications for issuing 50,000 shares of ` 10 each at a premium of 2 per
share. The amount was payable as follows:

On Application : ` 3 per share (including premium ` 1)

On Allotment : ` 3 per share (including premium ` 1)

On First call : ` 3 per share

On Second and Final Call : Balance amount

Application for 70,000 shares were received.

Allotment was made on the following basis.

Applications for 5,000 shares – Full

Applications for 50,000 shares – 90%

Balance of the applications were rejected. ` 1,11,000 were received on account of

allotment. The amount of allotment due from the shareholders to whom shares were
allotted on prorata basis was fully received. A few shareholders to whom shares were
allotted in full, failed to pay the allotment money. ` 1,20,000 were received on first
call. Directors decided to forfeit those shares on which allotment and call money was
due. Half of the forfeited shares were re-issued @ ` 8 per share fully paid up. Final call
was not made.

Pass the necessary journal entries for the above transactions in the book of DF Ltd.
Q17:

Jain Ltd. invited applications for issuing 1,12,000 equity shares of 10 each at par. The
amount per share was payable as follows:

On Application – 1

On Allotment – 2

On First call – 3

On Second and Final call – 4

Applications for 1,00,000 shares were received. Shares were fully allotted to all the
applicants. Ramesh failed to pay his allotment money which was 2,000. His shares
were forfeited immediately. Suresh did not pay the first call on 500 shares applied by
him. His shares were forfeited after the first call. The forfeited shares of Ramesh and
Suresh were re-issued at 9 per share fully paid up. Afterwards the second and final call
was made and was duly received.

Pass necessary journal entries for the above transactions in the books of Jain Ltd.

Q18: X ltd. purchased a running business from y ltd. for a sum of 30,00,000 payable
40% by cheque and balance by issue of fully paid up equity shares of 100 each at a
premium of 20%. The assets and liabilities consisted of the following:

Building - 12,00,000
Sundry Debtors - 4,30,000
Plant and Machinery - 8,00,000
Cash - 90,000
Stock - 5,00,000
Creditors - 2,00,000
Q19:

Q20: On 1st April, 2019, Bright Ltd. issued Rs. 4,00,000, 6% Debentures of Rs. 100 each
at a discount of 5%, redeemable after three years. The amount per debenture was
payable as follows:

On Application – Rs. 80 per debenture

On Allotment – Balance

The debentures were fully subscribed and all money was duly received. Pass necessary
journal entries for issue of debentures.