CHAPTER -1

COMPANY ACCOUNTS- ISSUE OF SHARES

PRACTICE SHEET -1

Q.1 Kabir Ltd. offered to public 1,00,000 Equity share of ₹10 each at
par payable along with application. Application were Received for all
the shares. Pass the journal Entry in the books of the company.
Q.2 A company issued 2,50,000 equity shares of ₹10 each. All the
amount has been Received in lumpsum. Pass necessary Journal
Entries in the books of the company.
Q.3 Sunrise Ltd invited application for 50,000 Equity shares of ₹10
each. The amount was payable on application. The issue was fully
Subscribed pass necessary journal entries
Q.4 X Ltd Issued 1,60, 000 9% preference Share of ₹10 each. All the
amount has been Received in lumpsum. Pass necessary Journal
Entries in the books of company
Q.5 Chetan Ltd offers 1,00,000 9% preference Share of ₹100 each at
par payable along with application. Application were Received for all
the Shares. Pass necessary journal entries in the books of the company
Q.6(i) A Ltd issued 60,000 equity share of ₹40 each. All the money
was duly received
(ii) B Ltd issued 10,000 12% preference share of ₹130 each.
Pass necessary journal entries for the above cases.
 CHAPTER -1
COMPANY ACCOUNTS- ISSUE OF SHARES
PRACTICE SHEET -2
Q.1 Surya Limited invited application for 30,000 shares of ₹10 each
payment was made as follows ₹ 3 on application ₹ 5 on allotment and
₹ 2 on first & final call the issue was fully subscribed. Pass the
necessary journal entries.
Q.2 Krishna Limited issued a prospectus inviting application for
20000 shares of ₹ 10 each payable as ₹ 3 on application ₹4 on
allotment and ₹ 3 on first and final call. Pass the necessary journal
entries.
Q.3 Sony Limited invited application for 50000 shares of 20 each the
amount was payable as 6 on application 8 on allotment and balance
on two equal call the entry the entire issue was applied and amount
were duly received give journal entries for the above transaction.
Q.4 India Limited issued a prospectus offering 10000 equity share of
₹10 each payable as rupees 3 on application ₹ 2 on allotment ₹ 4 on
first and final call and balance on second call all the payment received
journalise the following transaction.
Q.5 Sundar Limited issued a prospectus inviting application for 40000
shares of ₹ 100 each payable as 20 on application 30 on allotment and
20 on first and 30 on second & final call all the shares for applied
and allotted. Give journal entries
 CHAPTER -1
COMPANY ACCOUNTS- ISSUE OF SHARES
PRACTICE SHEET -3
Q.1 Ravi Limited invited application for 50000 equity shares of ₹10
each issued at premium of 2 Per share the whole amount was payable
on application the issue was fully subscribed pass the necessary
journal entries.
Q.2 AB Limited invited application for 20000 equity shares of ₹10
each at a premium of 4 Per share the whole amount was payable on
application pass necessary journal entries.
Q.3 Shiva Limited issue 100,000 equity share of ₹ 20 a premium of ₹5
per share. The whole amount was payable on application pass
necessary journal entries.
Q.4 Satyam Limited invited application for issuing 10000 equity share
of ₹100 each at a premium of ₹ 20 Per share the whole amount was
payable on application the issue was fully subscribed. pass necessary
journal entries.
 CHAPTER -1
COMPANY ACCOUNTS- ISSUE OF SHARES
PRACTICE SHEET -4
Q.1 XYZ Limited issued 10000 equity share of ₹10 each at a premium
of ₹5 payable as ₹4 on application ₹7 on allotment and balance on
two equal calls. All the amount was duly received. pass the necessary
journal entries
Q.2NSE India invited application for 50000 shares of ₹ 50 each at a
premium of rupees 10 Per share the amount was payable as ₹ 15 on
application ₹ 25 one allotment (including premium) and ₹ 20 on first
and final call. All money was duly received pass necessary journal
entries
Q.3New India Limited registered with the capital of ₹ 4000000 in
shares of rupees ₹ 10 each. it is issued a prospectus inviting
application for 100000 shares of ₹ 10 each issued at a premium of 2
per share payable as 3 on application 5 on allotment (including
premium) ₹ 4 on first and final call. The issue was fully subscribed
and all the money duly received pass the journal entry
Q.4 KBC Limited invited application for 50000 shares of ₹ 10 each
at a premium of ₹ 5 per share the amount was payable as ₹ 4 on
application (including 1 premium) ₹5 on allotment (including 2
premium) ₹ 4 on first call (including 2 premium) and balance on
second and final call. all money was duly received. Pass necessary
journal entries.
Q.5Kishan ltd invited application for 30000 shares of ₹10 each at a
premium of 4 Per share the amount was payable as ₹ 5 on application
(including ₹2 premium) ₹ 6 on allotment (including ₹2 premium) and
balance on call pass necessary journal entries.
Q.6Forex India invited application for 50,000 shares of ₹10 each
issued at a premium of ₹50 per share payable as ₹ 13 on application
including ₹10 premium) on allotment ₹ 39 (including 34 premium)
and on first and final call balance amount all money were duly
received pass the necessary journal entries.
Q.7 Corona Limited issued 40000 shares of ₹ 10 each at a premium of
2 Per share payable as follows on application ₹ 3 Per share on
allotment ₹5 Per share and balance on first and final call. all money
was duly received pass the necessary journal entries in the books.
 CHAPTER -1
COMPANY ACCOUNTS- ISSUE OF SHARES
PRACTICE SHEET – 5
Q.1 XYZ Limited invited application for 50,000 shares of ₹10 each
application was received for 45000 shares all money were duly
received pass the necessary journal entries.
Q.2 Prabal Limited invited application for 10,000 shares of ₹20 each
at a premium of ₹5 per share application were received for 9500
shares all the money received along with application pass the
necessary journal entries
Q.3 Alok Limited issued 65,000 shares of ₹10 each. Application were
received for 60000 shares the amount was payable as ₹ 3 on
application ₹ 5 on allotment and balance on two equal calls pass the
necessary journal entries.
Q.4 Jatin issued 60000 shares of rupees ₹ 5 each at a premium of ₹15
per share were payable as on application ₹ 6 (including ₹ 5 premium)
on allotment ₹10 (including ₹ 8 premium) on call ₹4 (including ₹ 2
premium) application were received for 50000 shares pass the
necessary journal entries.
Q.5 Citizen watch Limited invited application for 50,000 shares of
₹10 each payable as ₹ 3 on application ₹4 on allotment and balance
on call. Application received for 60000 shares application for 50,000
shares were accepted and excess application were rejected all the calls
were made and received except first and final call on 500 shares.
Q.6 Mona Limited invited application for 50000 shares of ₹10 each at
Par application were received for 80000 shares amount were payable
as ₹3 on application ₹4 on allotment ₹3 on call excess application
should be rejected. Amount refund through Bank pass necessary
journal entries
Q.7 Good company limited invited application for 100000 shares of
₹10 each payable as ₹3 on application ₹3 on allotment and balance
when required application received for 1,20,000 shares. application
was accepted for 1,00,000 shares and remaining application were
rejected allotment money received on 99500 shares only. pass
necessary journal entries
Q.8 Sachin Limited invited application for 50000 shares of ₹20 each
payable as ₹4 on application ₹8 on allotment ₹6 on first call and ₹2 on
second and final call. Application was received for 80,000 shares
excess application should be rejected pass necessary journal entries.
Q.9 Prachi Limited invited application for 50000 equity shares of ₹10
each were payable as ₹3 on application ₹4 on allotment and ₹3 on call
application were received for 80,000 shares all money were duly
received and share allotted on Pro Rata basis.
Q.10 Shah Limited issued 10000 shares of ₹10 each at par payable as
on application ₹ 3, on allotment ₹5, on first and final call ₹2
Application were received for 14000 shares the director decided to
make allotment on Pro Rata basis and utilise surplus of application
money towards allotment. pass necessary journal entry assuming all
amount were duly received.
Q.11 X Limited invited application for 10000 shares of ₹10 each at
Par the amount was payable on application ₹ 3 on allotment ₹4 on call
₹3 the issue was oversubscribed by 2000 shares and allotment made
on Pro Rata basis
Q.12 Smart Limited offers 20,000 shares to the public payable as ₹3
on application ₹4 on allotment ₹3 on first and final call. Application
received for 37000 shares out of 7000 shares application were
rejected and excess application were adjusted towards allotment. Pass
necessary journal entries