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Model Test Papers M.259

(ii) Mohan who applied for 3,000 shares, did not pay the allotment and first call
money. These shares were forfeited before demanding the final call.
(iii) Sohan did not pay the two calls on his 4,000 shares. These shares were forfeited
after the second and final call.
All the forfeited shares were reissued to Rakesh as fully paid-up at ` 8 per share.
Pass Journal entries required to record the above transactions and prepare Forfeited
Shares Account.
Or
RS Ltd. invited applications for 2,00,000 Equity Shares of ` 10 each. The amount was
payable as follows:
On Application : ` 3 per share;
On Allotment : ` 5 per share;
On First and Final Call : ` 2 per share.
Applications for 3,00,000 shares were received and pro rata allotment was made to all
the applicants on the following basis:
Applicants for 2,00,000 shares were allotted 1,50,000 shares.
Applicants for 1,00,000 shares were allotted 50,000 shares.
Bajaj, who was allotted 3,000 shares out of the group applying for 2,00,000 shares, failed
to pay the allotment money. His shares were forfeited immediately after allotment.
Sharma, who had applied for 2,000 shares out of the group applying for 1,00,000 shares
failed to pay the first and final call, his shares were also forfeited. Out of the forfeited
shares, 3,500 shares were reissued as fully paid-up @ ` 8 per share. The reissued shares
included all the forfeited shares of Bajaj.
Pass necessary Journal entries to record the above transactions. Also prepare Forfeited
Shares Account. (8)

PART B
ANALYSIS OF FINANCIAL STATEMENTS
18. If there should be neither Inflow nor Outflow of Cash, which of the following transactions
will be selected:
(a) A Long-term Loan taken from Bank;
(b) Goodwill written off;
(c) Cash deposited into Bank;
(d) Issue of Equity Shares on Conversion of Debentures? (1)
19. The accountant of X Ltd. has shown dividend paid and interest on debentures as Financing
Activity. Name another payment which will be shown as Financing Activity. (1)
20. (a) Name the major headings into which the Assets side of a Company’s Balance Sheet
is organised and presented, as per Schedule III, Part I of the Companies Act, 2013.
(b) Give the names and formulae of the two ratios which are complementary to
each other. (2 + 2)