Accounting for share capital-Important Questions

IMPORTANT QUESTIONS

CHAPTER 8: Accounting for Share Capital

1. Describe the salient features of a company?
2. What is the difference between private and public company?
3. Describe the following:-
   
   1. Issued share capital
   2. Paid up share capital
   3. Reserve share capital
4. ABC Company Ltd was registered with a capital of 10,00,000 divided into equity shares of Rs. 100 each, issued 6000 shares to the public. The entire 6000 shares were subscribed for by the public and were duly allotted. The shareholders were called upon to pay Rs. 90 per share. The first call of Rs. 20 per share was not received on 100 shares. Show the presentation of various shares capital in the absence of the company.
5. Explain the difference types of shares?
6. X Ltd was registered with a capital of 2300000 in shares of Rs. 10 each. It issued a prospectus inviting applications for 23000 shares at 40% premium payable at follows:-
   On Application Rs. 5 (including Rs. 1 premium)
   On Allotment Rs. 4 (including Rs. 1 premium)
   On First call Rs. 3 (including Rs. 1 premium)
   On Second call Rs. 2 (including Rs. 1 premium)
   Applications were received for 23000 shares, All money was duly received. Pass the necessary journal entries.
7. The Adarsh Control Device ltd. Issued to the public for subscription of 1000 shares of Rs. 10 each at discount of 10% payable Rs. 4 on application, Rs. 3 on allotment and Rs. 2 on first and final call. The issues were fully subscribed and all the money was duly received.
   Write the journal entries for the above in the books of accounts.
8. A Company issued to the public subscription 16, 8000 shares of Rs. 10 each at discount of 10% payable as Rs. 2 on Application, Allotment and first call and Rs.3 on the Final call. Applications were received for 2, 52000 shares and allotment was made prorate to 80% of applicants. R to whom 6720 shares were allotted to paid only the application money and S who had applied for 10080 shares paid the entire call money due along with the allotment. Pass the necessary journal entries to record the above transactions assuming that calls-in-arrears account is maintained.
9. D Ltd. makes an issue of 10000 equity shares of Rs. 10 each payable as:-
   
   • On Application Rs. 3
   • On Allotment Rs. 3
   • On first and final call Rs. 4
   All the shares were subscribed for. One shareholder who as allotted 500 shares however paid the entire amount due on his shares however paid the entire amount due on his shares along with his allotment money.