Page 205 - ISCDEBK-12

Joint Stock Company—Issue of Shares 7.41

5. Grand Prospect Ltd. acquired land costing ` 1,00,000 and in payment allotted 1,000 Equity Shares of
` 100 each as fully paid. Further, the company issued 4,000 Equity Shares to the public. The shares
were payable as follows:
` 30 on application;
` 30 on allotment; and
` 40 on the first and final call.
The public applied for all shares which were allotted. All the moneys were received except the call on
200 shares.
Pass Journal entries and prepare the Balance Sheet of the company.
6. Super Star Ltd. makes an issue of 10,000 Equity Shares of ` 100 each, payable as follows:
On application and allotment ` 50;
On first call ` 25;
On second call ` 25.
Members holding 400 shares did not pay the second call and the shares are duly forfeited, 200 of
which are reissued as fully paid @ ` 50 per share.
Pass Journal entries in the books of the company.
7. Jindal Steel Ltd. issued 50,000 Equity Shares of ` 10 each at ` 12 (i.e., at a premium of ` 2 per share)
payable as follows:
` 3 on application; ` 4 on allotment (including premium); ` 2 on first call; and ` 3 on second and final call.
The company received applications for 65,000 Equity Shares. Applications for 40,000 Equity Shares
were accepted in full; 10,000 Equity Shares were allotted to applicants of 20,000 Equity Shares and
applications for 5,000 Equity Shares were rejected. All the moneys were duly received except the first
call on 1,000 Equity Shares and final call on 1,500 Equity Shares.
Pass entries in the Cash Book and Journal of the company. Also, draw Balance Sheet.
8. Wintex Exports Ltd. registered with a share capital of ` 10,00,000 divided into 20,000 shares of
` 50 each, offers the shares to the public as under:
` 10 per share payable on application; ` 10 per share payable on allotment; ` 15 per share payable
on the first call; and ` 15 per share payable on the second and final call.
Shareholder ‘Amar’ who holds 300 shares has paid only the application money.
Shareholder ‘Basu’ who holds 200 shares has paid the application money on 200 shares and the
allotment money on only 100 shares. He has not paid any other calls.
Shareholder ‘Chaman’ who holds 180 shares has paid only the application and allotment money.
Shareholder ‘Deepa’ who holds 50 shares has paid the application, the allotment and the first call money.
Shareholder ‘Farooq’ who holds 30 shares has paid the application, the allotment and the first call
money in full and the second and final call money on only 20 shares.
The company forfeits the shares of the above shareholders who have not paid the arrears.
Journalise the above transactions including entries relating to Bank in the books of Wintex Exports Ltd.

GUIDE TO ANSWERS

2. Amount credited to Calls-in-Advance on allotment of shares—` 6,50,000;
Out of the above, amount applied or adjusted towards allotment money—` 5,00,000; and
Amount adjusted towards shares first and final call—` 1,50,000.