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 Span of Supervision 1. Ability of the manager: If the superior is capable, he can manage more number of subordinate, The capability of the ...

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Corporate Accounts | Issue of Shares part 1 | Problems and Explanation

                                  Corporate Accounting                     Unit 1 Issue of Shares Important 10 mark Problems part 1 : 1. Gan...


                                 Corporate Accounting

                    Unit 1 Issue of Shares




Important 10 mark Problems part 1 :

1. Ganesh ltd issued prospectus inviting applications for 10000 equity shares of ₹ 10 each, payable as follows: on application - ₹ 2 per share; on allotment - ₹4 per share; on first call - ₹ 4 per share. The issued is fully subscribed and paid up. pass journal entries in the books of Ganesh ltd.

2. XYZ ltd made a public issue of 20000 equity shares of ₹ 100 each at a premium of ₹ 10 each. The amount is payable as under:
      on application ₹ 25; on allotment ₹ 35 {including premium}; on first call ₹ 30; on final call ₹ 20. All the shares were subscribed. when call were made, except 100 shares of Mr. Ashok who failed to pay first and final calls. All money were received. The directors have forfeited these shares and re issued them at ₹ 75 each as fully paid up. The share issue expense amounted ₹ 60000. Give the necessary journal entries.

3. Good prospects ltd issued 50000 shares of ₹ 10 each at ₹ 12 payable as follows. The shares were payable as follows:
          ₹ 2 on application; ₹ 5 on allotment {including premium}; ₹ 5 on first and final call. All the shares were applied for and allotted. All the money were received exception of first and final call on 5000 shares which were forfeited. pass journal entries.

4. Varathan ltd invited applications for 20000 shares of the value of ₹ 200 each. The amount is payable is ₹ 50 on application, ₹ 80 on allotment and the balance when required. The whole of above issued was applied for and the cash was duly received. pass journal entries.

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LEARN THORUGH BRAINY DIRECTOR: Corporate Accounts | Issue of Shares part 1 | Problems and Explanation
Corporate Accounts | Issue of Shares part 1 | Problems and Explanation
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