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M.442 An Aid to Accountancy—CBSE XII

17. H.P. Ltd. invited applications for issuing 50,000 shares of ` 100 each at a premium of
` 10 per share payable as follows:
` 50 per share on Application;
` 35 per share on Allotment (including premium); and
Balance on First and Final Call.
Applications for 82,500 shares were received. Applications for 20,000 shares were
rejected and allotment was made on pro rata basis to the remaining applicants.
Sahil who had applied for 1,250 shares failed to pay the amount due on allotment and
call. The company forfeited his shares. Later on, out of the forfeited shares, company
reissued 500 shares at ` 105 per share fully paid-up.
Pass necessary Journal entries in the books of H.P. Ltd. and also present the Balance
Sheet of the company showing Share Capital.
Or
Himalayas Ltd. invited applications for issuing 1,00,000 Equity Shares of ` 10 each.
The amount was payable as follows:
(i) On Application — ` 3 per share,
(ii) On Allotment — ` 2 per share,
(iii) On First and Final Call — ` 5 per share.
Applications were received for 2,25,000 shares. Applications for 25,000 shares were
rejected and their application money was refunded. Shares were allotted to the
remaining applicants as follows:
(a) 50% shares to Raman who had applied for 40,000 shares.
(b) Full allotment to Akbar who had applied for 20,000 shares.
(c) On pro rata basis to the remaining applicants.
Excess application money was utilised in payment of allotment and call. Call was made
and duly received except on 600 shares allotted to an applicant in category (c). His shares
were forfeited. The forfeited shares were reissued for ` 9 per share fully paid-up.
Pass necessary Journal entries in the books of Himalayas Ltd. for the above transactions.
Also show share capital in the Balance Sheet of the company. (8)

PART B
ANALYSIS OF FINANCIAL STATEMENTS

18. State how Cash Flow Statement is historical in nature. (1)
19. From the following information, calculate Cash Flow from Financing Activities:
Particulars 31st March, 31st March,
2018 (`) 2017 (`)
Equity Share Capital 20,00,000 18,00,000
10% Debentures 2,00,000 3,00,000
Securities Premium Reserve 1,00,000 80,000
Additional Information: Interest paid on Debentures ` 20,000. (1)