109 :- Nitro Paints Ltd invited applications for issuing 1,60,000 equity shares of Rs 10 each at a premium of Rs 3 per share. The amount was payable as follows:
On Application – Rs 6 per share (including premium Rs 1);
On Allotment – Rs 3 per share (including premium Rs 1);
The Balance – on First and final call
Applications for 1,80,000 shares were received. Applications for 10,000 shares were rejected and pro rata allotment was made to the remaining applicants. Over payment received on application was adjusted towards sums due on allotment. All calls were made and were duly received except allotment and final call from Aditya who was allotted 3,200 shares. His shares were forfeited. Half of the forfeited shares were reissued for ₹ 43,000 as fully paid-up.
Pass necessary Journal entries for the above transactions in the books of Nitro Paints Ltd.
110 :- XYZ Ltd. invited applications for issuing 50,000 Equity Shares of Rs 10 each. The amount was payable as:
On Application – Rs 3 per share,
On Allotment – Rs 4 per share,
On First and Final Call – Rs 3 per share,
Applications were received for 75,000 shares and pro rata allotment was made as:
Applicants for 40,000 shares were allotted 30,000 shares on pro rata basis.
Applicants for 35,000 shares were allotted 20,000 shares on pro rata basis.
Ramu, to whom 1,200 shares were allotted out of the group applying for 40,000 shares, failed to pay the allotment money. His shares were forfeited immediately after allotment.
Shamu, who had applied for 700 shares out of the group applying for 35,000 shares, failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 1,000 shares were reissued @ Rs 8 per share as fully paid-up. The reissued shares included all the forfeited shares of Shamu. Pass necessary Journal entries to record the above transactions.
111 :- Konark Ltd. invited applications for issuing 3,00,000 shares of Rs 10 each. The amount per share was payable as follows: Rs 3 on application, Rs 3 on allotment, and Rs 4 on first and final call.
The company received applications for 4,00,000 shares. Allotment was done as follows:
(i) Applicants of 2,40,000 shares were allotted 2,00,000 shares.
(ii) Applicants of 1,20,000 shares were allotted 80,000 shares.
(iii) Remaining applicants were allotted 20,000 shares.
Money overpaid on applications was adjusted towards sums due on allotment. Divji, a sharehlder, belonging to group (ii), who had applied for 6,000 shares, failed to pay allotment and call money, Faisal, another shareholder, who was allotted 10,000 shares, paid the call money along with allotment. Faisal belonged to group (i).
Divji’s shares were forfeited after the first and final call. Half of the forfeited shares were reissued @ Rs 10 per share fully paid.
Pass the necessary Journal entries to record the above transactions in the books of the company.
112 :- Max Ltd. invited applications for 2,00,000 Equity Shares of Rs 10 each to be issued at 20% premium. The money payable per share was: on application Rs 5, on allotment Rs 4 (including premium of Rs 2), first call Rs 2 and final call Rs 1.
Applications were received for 2,40,000 shares and allotment was made as:
(i) to applicants for 1,00,000 shares – in full,
(ii) to applicants for 80,000 shares – 60,000 shares,
(iii) to applicants for 60,000 shares – 40,000 shares.
Applicants of 1,000 shares falling in Category (i) and applicants of 1,200 shares falling in Category (ii) failed to pay allotment money. These shares were forfeited on failure to pay first call. Holders of 1,200 shares falling in Category (iii) failed to pay the first and final call and these shares were forfeited after final call.
1,300 shares [1,000 of Category (i) and 300 of Category (ii)] were reissued at Rs 8 per share as fully paid-up.
Journalise the above transactions. Prepare Cash Book and Balance Sheet.
113 :- XYZ Ltd. issued a prospectus inviting applications for 2,000 shars of Rs 10 each at a premium of Rs 4 per share, payable as:
On Application – Rs 6 (including Rs 1 premium),
On Allotment – Rs 2 (including Rs 1 premium),
On First Call – Rs 3 (including Rs 1 premium),
On Second and Final Call – Rs 3 (including Rs 1 premium).
Applications were received for 3,000 shares and pro rata allotment was made on the application for 2,400 shares. It was decided to utilise excess application money towards the amount due on allotment.
X, to whom 40 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his share were forfeited.
Y, who applied for 72 shares failed to pay the two calls and on his such failure, his shares were forfeited.
Of the shares forfeited, 80 shares were sold to Z credited as fully paid-up for Rs 9 per share, the whole of Y’s shares being included, Prepare Journal, Cash Book and the Balance Sheet.