A LEADING INSTITUTE SINCE 35 YEARS JAI SHREE SHYAM ROHAN KHANDELWAL: 8433299915

GAURI SHANKER COMMERCE COACHING

Sheet-1
Issue of Shares at Par
1. *JC ltd. Invited applications for 50,000 equity shares of ₹10 each issued at par. The
whole amount was payable on application. The issue was fully subscribed. Pass the
necessary Journal entries and also show how “Share Capital” will appear in the
Balance sheet of the company. Also prepare ‘Notes to Accounts’ for the same.
Ans. Bank a/c .. Dr. To Equity share application a/c 5,00,000
Equity Share application a/c .. Dr. To Equity share capital a/c 5,00,000

2. *ABC ltd. Was a cloth manufacturing company located in Delhi. Being a socially aware
organisation, they wanted to set up a manufacturing plant in a backward area of
Kashmir to provide employment to the local people. On July 17, 2014, a flood had hit
the entire state of Jammu & Kashmir causing massive destruction and loss. The
company wanted to help the people, so they decided to raise the funds through
issuing 50,000 equity shares of ₹50 each to set up the plant in the rural area of
Kashmir.
Pass necessary journal entries for the issue of shares and identify any two values that
the company wanted to communicate to the society.
Ans. Bank a/c .. Dr. To Equity share application and allotment a/c 25,00,000
Equity share application and Allotment a/c … Dr. 25,00,000
To Equity share capital a/c 25,00,000

3. *Surya Ltd. Invited application for 30,000 shares of ₹10 each. Payments were to be
made as follows: ₹3 on application; ₹5 on Allotment and ₹2 on first and final call. The
issue was fully subscribed and cash was duly received. Pass the necessary Journal
entries to record the above transactions and also show how “Share Capital” Will
appear in the Balance sheet of the company. Also prepare ‘Notes to Accounts’ for the
same.

4. DCM ltd issued prospectus inviting applications for 10,000 shares of ₹10 each, payable
- ₹3 on application; ₹5 on allotment and ₹2 on share first call.
All shares were applied for. Pass journal entries, draw ledger accounts and prepare
opening balance sheet of the company assuming that all sum due on allotment and
call have been received. Expenses on issue of shares amounted to ₹5,000.

5. Krishna Limited issued a prospectus inviting applications for 20,000 shares of ₹10
each, payable as: ₹3 on application; ₹3 on allotment and ₹4 on first and final call.
A LEADING INSTITUTE SINCE 35 YEARS JAI SHREE SHYAM ROHAN KHANDELWAL: 8433299915
Applications were received for 20,000 shares. Allotment was made to all applicants. All
dues were duly received. Give the necessary Journal Entries and opening Balance
Sheet in the company’s books.

6. Sony Ltd. Invited applications for 50,000 shares of the value of ₹20 each. The amount
is payable as: ₹5 on Application, ₹8 on allotment and balance on first and final call. The
entire issue was applied and amounts were duly received. Give the journal entries for
the above transactions.

7. India Ltd. Issued a prospectus offering 10,000 equity shares of ₹10 each, payable as ₹3
on application , ₹2 on allotment, ₹4 on first call and ₹1 on second and final call. The
issue was fully subscribed and allotment was made accordingly. All the payments were
duly received. Journalise the above transactions in the books of the company.

8. Sundar Ltd. Issued a prospectus inviting applications for 40,000 shares of ₹100 each,
payable as: ₹20 on application, ₹30 on allotment, ₹20 on first call and ₹30 on second
and final call. All the shares were applied and allotted. Give Journal Entries.

9. Ken Ltd. Issued 40,000 shares of ₹10 each payable ₹2 on application, ₹3 on allotment,
₹3 on first call and ₹2 on final call. All the shares were subscribed and allotted and all
the sum due is duly received. Expenses on Issue of shares amounted to ₹1,00,000.
Pass journal entries and prepare ledger accounts.

10. X Ltd. Was registered with an authorised capital of ₹5,00,000 divisible into shares of
₹10 each. It issued 30,000 shares to the public for subscription payable ₹3 on
application; ₹5 on allotment and balance on call.
All the money is duly received. Pass journal entries to record the transactions and
draw Balance Sheet.
[Ans. Share Capital: Subscribed & fully paid ₹3,00,000; cash at Bank ₹3,00,000]

11. *(Issued at Premium, Payable at Lump-sum) Sunrise Ltd. Invited applications for
50,000 Equity Shares of ₹10 each issued at a premium of ₹2. The whole amount was
payable on application. The issue was fully subscribed. Pass the necessary journal
Entries and also show the balance sheet of the company.

12. *(Issued at premium, payable in Instalments) New India Ltd. Was registered with a
capital of ₹4,00,000 in shares of ₹10 each. It issued a prospectus inviting applications
for 1,00,000 shares of ₹10 each issued at a premium of ₹2, payable as:
On Application : ₹3
On Allotment : ₹5 (including ₹2 premium)
On First and Final call : ₹4

The issue was fully subscribed and all money was duly received. Pass the necessary
Journal Entries and also show the balance Sheet of the Company.
A LEADING INSTITUTE SINCE 35 YEARS JAI SHREE SHYAM ROHAN KHANDELWAL: 8433299915
13. *Forex Ltd. Invited applications for 50,000 shares of ₹10 each issued at a premium of
₹50 per share, payable as:
On Application : ₹13 (including ₹10 premium)
On Allotment : ₹39 (including ₹34 premium)
On first and Final Call : Balance
The issue was fully subscribed and all money was duly received. Pass the necessary
Journal Entries.

14. (Issued at Premium, Payable in instalments) Y Ltd. Issued 40,000 shares of ₹10 each
issued at a premium of ₹2, payable as follows: on Application: ₹3 per share; On
Allotment: ₹5 per share and on First and Final Call: Balance. All Money were duly
received. Pass the necessary Journal Entries in the books of the Company.

15. *(Issue of Shares at Premium)

X Ltd. Was registered with authorised capital of ₹10,00,000 divided into equity shares
of ₹10 each. It issued half of its shares to public at a premium of ₹2 each, payable ₹2
on application, ₹5 on allotment (including premium), ₹3 on first call and ₹2 on second
and final call.
All the shares were subscribed and all money is duly received. The shares issue
expenses comes to ₹20,000 which were written off against securities premium. 2,000
shares were issued to promoters at par for the services rendered.
Pass journal entries, prepare Bank a/c and draw opening Balance sheet.

16. X ltd. was registered with an authorised capital of ₹10,00,000 divided into equity
shares of ₹10 each. It issued 40,000 shares to the public at a premium of ₹2 each,
payable as ₹2 on application, ₹5 on allotment (including premium), ₹3 on first call and
₹2 on second and final call. All the shares were subscribed and all money is duly
received. Pass necessary Journal entries.

17. Satya ltd. was registered with an authorised capital of ₹70,00,000 divided in 7,00,000
equity shares of ₹10 each. Company issued 1,00,000 equity shares at a premium of ₹3
per share, payable as follows: ₹4 on Application; ₹5 on Allotment (including premium);
₹2 on first Call and ₹2 on Second and Final call. All Shares were subscribed and all the
money was duly received. Prepare necessary Journal Entries.

18. New Era Ltd. issued 40,000 shares of ₹10 each at a premium of ₹2 payable as: ₹5 on
application, ₹4 on allotment and ₹3 on first and final call. Issue was fully subscribed
and all money was duly received as. Give the necessary Journal Entries in the books of
the company.
A LEADING INSTITUTE SINCE 35 YEARS JAI SHREE SHYAM ROHAN KHANDELWAL: 8433299915
19. The Pacific Ltd. issued 50,000 equity shares of ₹10 each at premium of ₹2 per share.
The amount was payable as: ₹2 on application, ₹5 on allotment (including premium)
and the balance on first and final call. The company received all the amounts till the
allotment and it has not yet made the first and final call. Pass the necessary Journal
Entries.

20. JP Ltd. issued 20,000 shares of ₹10 each at a premium of ₹3 per share payable as:
On Application : ₹4 (including ₹1 premium)
On Allotment : ₹5 (including ₹2 premium)
On First and Final Call : ₹4
The applications for 20,000 shares were received. All money was received as and when
due. Give the necessary journal entries in the books of the company.
21. K Ltd. issued 1,000 equity shares of ₹100 each at a premium of 10% payable ₹20 on
application, ₹40 on allotment (including premium ₹10), ₹25 on first call and ₹25 on
second call.
All the shares were subscribed for and money is duly received. Pass journal entries and
draw opening balance sheet of the company.
Ans. Notes to accounts: Subscribed & fully paid ₹1,00,000; Securities Premium Reserve
A/c ₹10,000 Cash at Bank ₹1,10,000.

22. Kalpana Ltd. invited application for 20,000 shares of ₹20 each at a premium of ₹2
payable: ₹4 on application, ₹7 on allotment (including premium) and balance on call.
All the shares were subscribed and all money is duly received. The share issue
expenses amounted to ₹20,000 which were written off against securities premium.
Pass journal entries, prepare bank A/c and draw Balance Sheet.
Ans. Notes to Accounts: Subscribed & fully paid ₹4,00,000 securities Premium Reserve
A/c ₹20,000 Cash at Bank A/c ₹4,20,000.