Question : To provide employment to the youth and to develop Baramula district of Jammu and Kashmir, Jyoti Power Ltd. decided to set up a power plant. For raising funds the company decided to issue 8,50,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The whole amount was payable on application. Applications for Rs. 20,00,000 shares were received. Applications for 3,00,000 shares were rejected and shares were allotted to the remaining applicants on pro-rata basis.
Question:- Amount to be refunded:
Option 1: Rs. 25,50,000
Option 2: Rs. 1,49,50,000
Option 3: Rs. 65,00,000
Option 4: None of these
Correct Answer: Rs. 1,49,50,000
Solution : Answer = Rs. 1,49,50,000
In the Books of Jyoti Power Ltd.
JOURNAL
Date |
Particulars |
L.F. |
Dr. ( Rs.) |
Cr.( Rs.) |
|
Bank A/c |
...Dr. |
2,60,00,000 |
|||
To Equity Shares Application and Allotment A/c (Application and allotment money received on 20,00,000 shares of Rs. 10 each @ Rs. 13 per share) |
2,60,00,000 |
||||
Equity Shares Application and Allotment A/c |
...Dr. |
2,60,00,000 |
|||
To Equity Share Capital A/c (8,50,000 x Rs. 10) To Securities Premium Reserve A/c (8,50,000 x Rs. 3) To Bank A/c (11,50,000 x Rs. 13) (Application and allotment money adjusted for 8,50,000 shares and the balance refunded) |
85,00,000 25,50,000 1,49,50,000 |
Hence, the correct option is 2.
Question : A company invited applications for 5,00,000 shares and received applications for 6,00,000 shares. Applications for 1,00,000 shares were rejected and the remaining shares were allotted to applicants. How many shares an applicant apply for 500 shares will be allotted?
Option 1: 200 Shares
Option 2: 500 Shares
Option 3: 400 Shares
Option 4: 600 Shares
Correct Answer: 500 Shares
Solution : Application Received = 6,00,000
Application Rejected = 1,00,000
Total Shares Alloted= Application Received - Application Rejected
= 6,00,000 - 1,00,000 = 5,00,000 shares.
5,00,000 applied = 5,00,000 allotted
500 applied = 5,00,000/ 5,00,000 x 500 = 500 Shares.
Hence, the correct answer is option 2.
Question : X Ltd. invited applications for 50,000 shares of Rs.10 each at 10% premium, payable on Rs.3 on application, Rs.3 on allotment and balance amount on first and final call Applications were received for 1,20,000 shares and shares were allotted on pro-rata basis The excess money received on application was to be adjusted against allotment only. A shareholder who applied for 6,000 shares, could not pay the call money and his shares were accordingly forfeited.
Question:- At the time of allotment of shares, share capital will be credited with _______.
Option 1: Rs. 3,60,000
Option 2: Rs. 1,50,000
Option 3: Rs. 2,10,000
Option 4: None of these
Correct Answer: Rs. 1,50,000
Solution : Answer = Rs. 1,50,000
The amount credited to the share capital account at the time of allotment = Rs.50,000 X 3 = Rs.1,50,000.
Question :
To provide employment to the youth and to develop Baramula district of Jammu and Kashmir, Jyoti Power Ltd. decided to set up a power plant. For raising funds the company decided to issue 8,50,000 equity shares of Rs. 10 each at a premium of Rs. 3 per share. The whole amount was payable on application. Applications for 20,00,000 shares were received. Applications for 3,00,000 shares were rejected and shares were allotted to the remaining applicants on pro rata basis.
On the basis of the above information, choose the correct option to the following question.
Question:- Share capital will be credited by
Option 1: Rs. 85,00,000
Option 2: Rs. 26,00,000
Option 3: Rs. 14,95,000
Option 4: None of theses
Correct Answer: Rs. 85,00,000
Solution :
Answer = Rs. 85,00,000
JOURNAL
Date |
Particulars |
L.F. |
Dr. ( Rs.) |
Cr.( Rs.) |
|
Bank A/c |
...Dr. |
2,60,00,000 |
|||
To Equity Shares Application and Allotment A/c (Application and allotment money received on 20,00,000 shares of Rs. 10 each @ Rs. 13 per share) |
2,60,00,000 |
||||
Equity Shares Application and Allotment A/c |
...Dr. |
2,60,00,000 |
|||
To Equity Share Capital A/c (8,50,000 x Rs. 10) To Securities Premium Reserve A/c (8,50,000 x Rs. 3) To Bank A/c (11,50,000 x Rs. 13) (Application and allotment money adjusted for 8,50,000 shares and the balance refunded) |
85,00,000 25,50,000 1,49,50,000 |
Question : In the following passage, some blanks are given and against each blank five alternative words are suggested. Choose the correct alternative to complete the passage in a meaningful way.
Meanwhile in technical ________________ (1) the “Cloud” may be called as the combination of computing resources over a network, popularly, “Cloud” has come to mark and encompass the complete range of sructures that make online activity possible, from facebook to netflix to Google Drive. Like a fluffly ________________ (2) moving across a wide and clear blue sky, not forming a particular shape or form, the Cloud of the digital is elusive, its internal working seems complex to the public, an example of what MIT cybernetician Norbert Weiner once called a “black box.” But like the clouds above us, however shapelss or ________________ (3) they may seem to be, are in fact made of matter, the Cloud of the digital is also perpetually material.
To get at the matter of the Cloud we must ________________ (4) the coils of coaxial cables, fiber optic tubes, cellular towers, air conditioners, power distribution units, transformers, water pipes, computer servers, and more. We must be aware of its material flow of electricity, water, air, heat, metals, minerals, and all the earth elements that ________________ (5) our digital lives. By this we can say that cloud is not only material but is also an ecologicak force. As it continues to ________________ (6), its impact on the environment is also increasing, even as entire workforce from engineers to technicians, and executives behind its formation aspire to balance profitability with sustainability.
Nowhere is this ________________ (7) more visible than in the walls of the infrastructures where the content of the Cloud lives: the factory-libraries where data is stored and computational power is pooled to keep our cloud applications ________________ (8).
Q. Choose the correct alternative for blank 7
Option 1: Nettle
Option 2: Surreptitious
Option 3: Dilemma
Option 4: Assaying
Correct Answer: Dilemma
Solution : The correct answer is option 3.
Explanation:
The only word that fits the blank and makes the sentence coherent is dilemma.
A dilemma is a situation in which a difficult choice must be made between two or more alternatives, particularly ones that are both undesirable.
Nettle - irritate or annoy: nip (someone).
Surreptitious: kept secret, especially because it would not be approved of.
Assaying: determining the content or quality of (a metal or ore).
Question : X Ltd. invited applications for 50,000 shares of Rs.10 each at 10% premium, payable on Rs.3 on application, Rs.3 on allotment and balance amount on first and final call Applications were received for 1,20,000 shares and shares were allotted on pro-rata basis The excess money received on application was to be adjusted against allotment only. A shareholder who applied for 6,000 shares, could not pay the call money and his shares were accordingly forfeited.
Question:- At the time of forfeiture of shares, share forfeited account will be credited with _____.
Option 1: Rs. 18,000
Option 2: Rs. 12,500
Option 3: Rs. 15,000
Option 4: Rs. 24,000
Correct Answer: Rs. 12,500
Solution : Answer = Rs. 12,500
Number of shares allotted = 2,500.
Application money = Rs.2 (excluding SPR)
Allotment money = Rs.3
Total money received after shares are forfeited = Rs.(2 + 3) X 2,500 = Rs.12,500 Shares.
Question : XYZ Ltd. invited applications for issuing 1,00,000 equity shares of Rs. 10 each at par. The amount was payable as follows:
On Application— Rs. 3 per share;
On Allotment— Rs. 4 per share; and
On First and Final Call— Rs. 3 per share.
The issue was oversubscribed by three times. Applications for 20% shares were rejected and the money refunded. Allotment was made to the remaining applicants as follows:
Category | No. of Shares Applied | No. of Shares Allotted |
I | 1,60,000 | 80,000 |
II | 80,000 | 20,000 |
Excess money received with applications was adjusted towards sums due on allotment and first and final call. All calls were made and were duly received except the final call by a shareholder belonging to Category I who has applied for 320 shares. His shares were forfeited. The forfeited shares were reissued at Rs. 15 per share fully paid-up.
Question:- What is the amount to be transferred to Capital Reserve?
Option 1: Rs.1,120
Option 2: Rs.1,920
Option 3: Rs.800
Option 4: None of the above
Correct Answer: Rs.1,120
Solution : Answer = Rs.1,120
1. Adjustment of Application Money: |
Rs. |
Application money received on shares applied (3,00,000 x Rs. 3) |
9,00,000 |
Less: 20% applications rejected (20% of 3,00,000, i.e., 60,000 x Rs. 3)—Refunded (A) |
1,80,000 |
7,20,000 |
|
Less: Application money adjusted on allotted shares (1,00,000 x Rs. 3) |
3,00,000 |
(Category I and II) |
|
Excess Application money (Category I and II) |
4,20,000 |
2. Adjustment of Excess Application Money: |
Rs. |
Category 1: Application money received (1,60,000 x Rs. 3) |
4,80,000 |
Less: Application money adjusted on allotted shares (80,000 x Rs. 3) (C) |
2,40,000 |
Excess application money |
2,40,000 |
Less: Excess application money to be adjusted on allotment |
2,40,000 |
Surplus |
Nil |
Category II: Application money received on shares applied (80,000 x Rs. 3) Less: Application money due on shares allotted (20,000 x Rs. 3) |
. 2,40,000 60,000 |
|
Excess Application money Less: Amount to be adjusted on Allotment (20,000 x Rs. 4) (D) |
80,000 |
1,80,000 |
Amount to be adjusted on first and final call (20,000 x Rs. 3) (E) |
60,000 |
1,40,000 |
Excess Amount to be refunded (B) |
40,000 |
• Total Application Money Refunded (A + B) = Rs. 1,80,000 + Rs. 40,000 = Rs. 2,20,000.
• Excess Application Money to be adjusted on Allotment (C + D) = Rs. 2,40,000 + Rs. 80,000 = Rs. 3,20,000.
• Excess Application Money to be adjusted on First and Final Call (Calls-in-Advance) = Rs. 60,000 (E).
3. Shares are reissued at premium, discount on reissue is Nil.Therefore, total amount of Rs. 1,120 credited to Forfeited Shares Account is capital gain and is transferred to Capital Reserve Account.
Hence, the correct option is 1.
Question : Narain Ltd. invited applications for issuing 7,500, 12% Debentures of Rs.100 each at a premium of Rs.35 per debenture. The full amount was payable on application. Applications were received for 10,000 debentures. Applications for 2,500 debentures were rejected and the application money was refunded. Debentures were allotted to the remaining applicants.
Bank account will be debited by ___________.
Option 1: Rs 13,50,000
Option 2: Rs 7,50,000
Option 3: Rs 10,12,500
Option 4: None of the above
Correct Answer: Rs 13,50,000
Solution : Answer = Rs 13,50,000
Bank A/c Dr 13,50,000
To Deb. Application and allotment A/c 13,50,000
(10,000 debentures x 135)
Hence, the correct option is 1.
Question : A company invited applications for 50,000 Equity Shares of Rs. 10 each payable as follows:
On application Rs. 3; on allotment Rs. 3; on first and final call Rs. 4.
Applications were received for 1,10,000 shares. It was decided
(i) to refuse allotment to the applicants for 10,000 shares,
(ii) to allot 50% to X who has applied for 20,000 shares,
(iii) to allot in full to Y who has applied for 10,000 shares,
(iv) to allot balance of the available shares on pro-rata basis among the other applicants, and
(v) to utilise excess application money in part payment of allotment and final call.
Question:- Total application money will refund will be:
Option 1: Rs. 60,000
Option 2: Rs. 30,000
Option 3: Rs. 1,50,000
Option 4: Rs. 20,000
Correct Answer: Rs. 30,000
Solution : Answer = Rs. 30,000
STATEMENT SHOWING DETAILS OF SHARES APPLICATION MONEY
Categories |
Shares |
Shares |
Application |
Disposal of Shares Application Money Received |
|||
Applied |
Allotted |
Money |
Share |
Shares |
Calls-in- |
Refund |
|
Received |
Capital |
Allotment |
Advance |
||||
Rs. |
Rs. |
Rs. |
Rs. |
Rs. |
|||
1 (Rejected) |
10,000 |
NIL |
30,000 |
30,000 |
|||
(10,000 x Rs.3) |
|||||||
II X |
20,000 |
10,000 |
60,000 |
30,000 |
30,000 |
||
(20,000 x Rs. 3) |
(10,000 x Rs. 3) |
(10,000 x Rs. 3) |
|||||
III Y |
10,000 |
10,000 |
30,000 |
30,000 |
|||
(10,000 x Rs. 3) |
(10,000 x Rs. 3) |
||||||
IV (Prorata) |
70,000 |
30,000 |
2,10,000 |
90,000 |
90,000 |
30,000 |
|
(Bal.Fig.) |
(Bal.Fig.) |
(70,000 x Rs. 3) |
(30,000 x Rs. 3) |
(30,000 x Rs. 3) |
(2,10,000 |
||
- 90,000 - 90,000) |
|||||||
Total |
1,10,000 |
50,000 |
3,30,000 |
1,50,000 |
1,20,000 |
30,000 |
30,000 |
Hence, the correct option is 2.