Question : Y Ltd. invited applications for issuing 500, 12% debentures of Rs.100 each at a discount of 5%. These debentures were redeemable after three years at par. Applications for 600 debentures were received. Pro-rata allotment was made to all the applicants assuming that the whole amount was payable with application.
Question:- When excess application money is refunded, Bank Account will be credited by __________.
Option 1: Rs. 10,000
Option 2: Rs. 2,500
Option 3: Rs. 8,500
Option 4: Rs. 9,500
Correct Answer: Rs. 9,500
Solution : Answer = Rs. 9,500
Amount refunded (Rs. 100 X 95) = Rs. 9,500.
Hence, the correct option is 4.
Answer laterQuestion : Y Ltd. invited applications for issuing 500, 12% debentures of Rs.100 each at a discount of 5%. These debentures were redeemable after three years at par. Applications for 600 debentures were received. Pro-rata allotment was made to all the applicants assuming that the whole amount was payable with application.
Question:- Discount on issue of debenture account will be _____.
Option 1: Debited by Rs. 3,000
Option 2: Debited by Rs. 2,500
Option 3: Credited by Rs. 2,500
Option 4: Credited by Rs. 3,000
Correct Answer: Debited by Rs. 2,500
Solution : Answer = Debited by Rs. 2,500
Debit discount on issue of Debentures with Rs.500 X 5= Rs. 2,500.
Hence, the correct option is 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:- Amount received at the time of First and Final call is _______.
Option 1: Rs. 2,37,500
Option 2: Rs. 2,50,000
Option 3: Rs. 2,22,000
Option 4: Rs. 2,38,000
Correct Answer: Rs. 2,37,500
Solution : Answer = Rs. 2,37,500
Number of shares after forfeiture = 50,000 - 2,500 (shares allotted).
Call money = Rs.5.
The amount received on call = Rs.47,500 X 5 = Rs.2,37,500.
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 : On 1st April, 2019, amita Ltd. issued 30,000 Equity Shares of Rs. 10 each at a premium of Rs. 4 per share, payable as follows:
Rs. 6 on application (including Rs. 1 premium),
Rs. 2 on allotment (including Rs. 1 premium),
Rs. 3 on first call (including Rs. 1 premium), and
Rs. 3 on second and final call (including Rs. 1 premium).
Applications were received for 45,000 shares, of which applications for 9,000 shares were rejected and their money was refunded. Rest of the applicants were issued shares on pro rata basis and their excess money was adjusted towards allotment.
Hari, to whom 600 shares were allotted, failed to pay the allotment money and his shares were forfeited after allotment. Mohan, who applied for 1,080 shares failed to pay the two calls and on his such failure, his shares were forfeited.
1,200 forfeited shares were reissued as fully paid-up on receipt of Rs. 9 per share, the whole of Mohan's shares being included.
Question:- Amount received on allotment will be:
Option 1: Rs. 60,000
Option 2: Rs. 24,000
Option 3: Rs. 23,520
Option 4: Rs. 36,000
Correct Answer: Rs. 23,520
Solution : Answer = Rs. 23,520
|
Amount received on allotment: |
|
|
Total amount due on allotment (30,000 x Rs. 2) |
60,000 |
|
Less: Excess application money adjusted (6,000 x Rs. 6) |
36.000 24.000 |
|
Less: Amount due but not paid by Hari [WN 1 (b)] |
480 |
|
Net amount received on allotment |
23,520 |
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:- Excess application money adjusted against the amount due on allotment is _____.
Option 1: Rs. 3,60,000
Option 2: Rs. 1,20,000
Option 3: Rs. 2,10,000
Option 4: None of these
Correct Answer: Rs. 2,10,000
Solution : Answer = Rs. 2,10,000
The excess amount is adjusted at the time of allotment = 70,000 (1,20,000 - 50,000) X Rs.3 = Rs.2,10,000.
Question :
On 1st April, 2019, amita Ltd. issued 30,000 Equity Shares of Rs. 10 each at a premium of Rs. 4 per share, payable as follows:
Rs. 6 on application (including Rs. 1 premium),
Rs. 2 on allotment (including Rs. 1 premium),
Rs. 3 on first call (including Rs. 1 premium), and
Rs. 3 on second and final call (including Rs. 1 premium).
Applications were received for 45,000 shares, of which applications for 9,000 shares were rejected and their money was refunded. Rest of the applicants were issued shares on pro rata basis and their excess money was adjusted towards allotment.
Hari, to whom 600 shares were allotted, failed to pay the allotment money and his shares were forfeited after allotment. Mohan, who applied for 1,080 shares failed to pay the two calls and on his such failure, his shares were forfeited.
1,200 forfeited shares were reissued as fully paid-up on receipt of Rs. 9 per share, the whole of Mohan's shares being included.
Question:- Amount due but not paid by hari at the time of allotment will be:
Option 1: Rs. 720
Option 2: Rs. 1,200
Option 3: Rs. 480
Option 4: Nil
Correct Answer: Rs. 480
Solution :
Answer = Rs. 480
Excess amount received from Hari on application:
600 shares were allotted to Hari
Therefore, he must have applied for =36,000/ 30,000 x 600 = 720 shares
Excess application money received from Hari:
(720 shares - 600 shares) x Rs. 6 = 120 shares x Rs. 6 = Rs. 720.
|
Amount due but not paid by Hari on allotment: |
Rs. |
|
600 shares x Rs. 2 |
1,200 |
|
Less: Excess application money adjusted on allotment [ Rs. 600 as a part of Share Capital (600 x Rs. 1) and balance Rs. 120 as a |
720 |
|
part of Securities Premium] |
|
|
Amount due but not paid by Hari |
480 |
Hence, the correct option is 3.
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 for the following question
Question:- Amount refunded ___________.
Option 1: Rs 1,49,50,000
Option 2: Rs 11,50,000
Option 3: Rs 25,50,000
Option 4: None of theses
Correct Answer: Rs 1,49,50,000
Solution :
Answer = 14,50,000
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 : A supercomputer would be used for which one of the following applications?
Option 1: Business computing
Option 2: Desktop publishing
Option 3: Weather forecasting
Option 4: Computer-aided designing
Correct Answer: Weather forecasting
Solution : The correct option is weather forecasting.
A supercomputer would be utilised for weather forecasting. Supercomputers are built to handle exceedingly complex and computationally demanding activities like modelling and simulating weather patterns, climate change and atmospheric conditions. These machines can handle massive quantities of data and conduct complicated computations at rates much above those of standard desktop computers or smaller servers.
Question : SK Ltd. invited applications for 3,20,000 equity shares of Rs. 10 each at a premium of Rs. 5 per share. The amount was payable as follows:
On application— Rs. 3 per share (including premium Rs. 1 per share),
On allotment— Rs. 5 per share (including premium Rs. 2 per share),
On first and final call—Balance.
Applications for 4,00,000 shares were received. Applications for 40,000 shares were rejected and application money refunded. Shares were allotted on pro rata basis to the remaining applicants. Excess money received with applications was adjusted towards sums due on allotment. Jeevan holding 800 shares failed to pay the allotment money and his shares were immediately forfeited. Afterwards, final call was made. Ganesh who had applied for 2,700 shares failed to pay the final call. His shares were also forfeited. Out of the forfeited shares, 1,500 shares were reissued at Rs. 8 per share fully paid-up. The reissued shares included all the forfeited shares of Jeevan
Question:- At the time of forfeiture of Ganesh’s share, forfeited share account will be ___________.
Option 1: Credited with Rs. 12,000
Option 2: Credited with Rs. 24,000
Option 3: Credited with Rs. 9,000
Option 4: None of the above
Correct Answer: Credited with Rs. 12,000
Solution : Answer = Credited with Rs. 12,000
Number of Shares allotted to Ganesh = 3,20,000/3,60,000 × 2,700 = 2,400 shares.
Amount received per share = Rs.5.
Amount in Share Forfeiture A/c = Rs.2,400 X 5 = Rs.12,000.
Hence, the correct option is 1.
