Subscribed and

21. Saraswati Ltd. has an authorised capital of 10,00,000 divided into equity shares of { 10each.
fully paid up share capitalof the company was4,00,000. To meet its new financial requirements, the company
issued 20,000 equityshares of? 10 each which were payable as follows: 73 on application;*3on allotment, 2on
first call and 2 on second and final call. The issue was fully subscribed. The allotment money was payable on 1"
May 2021, first call money on 1" August 2021 and final callon 1" October 2021. Xwhom 1000 shares were allotte.,
did notpay the allotment and call money; Yan allotee of 600 shares, did not pay the two calls; and Z whom 400
shares were allotted, did not pay the final call. Present the share capital in the Balance Sheet of the company as
per Schedule III, Part Iof the Companies Act, 2013.Also prepare Notes to Accounts for the same. 3
Ans.
 was
applications for issuing 10,000 equity shares of 10 each. The amount per share
25. (a) Ganga Ltd. invited on first call and 2 on secondand final call.
payable as follows: 2 on application, ?3 on allotment, ?3 application
Applications were received for 15,000 shares. The applications for 3,000 shares were rejected and
Excess money
money refunded. The shares were allotted on pro-rata basis to the applicants of 12,000 shares.
received with applications was adjusted towards sums due on allotment. All shareholders paid the allotment
money except one shareholder who was allotted 200 shares. These shares were forfeited. The first call was
made thereafter and duly received. The second and final call was not yet made.
 Pass Journal entries for the above transactions in the books of Ganga Ltd. Open Calls-in-Arrears Account
6
wherever required.
OR
(b) Mukund Ltd. invited applications for issuing 50,000 equity shares of 10 each at 10% premium. The amount
per share was payable as follows: 3on application, ? 3(including premium) on allotment and balance
Ans.
amount on first and final call. Applications were received for 1,20,000 shares and 'shares were allotted on
pro-rata basis to all the applicants. The excess money received on application was adjusted towards sums
due on allotment only. Application money in excess to sums due on allotment was refunded. Ashareholder
who had applied for 6,000 shares,could not pay the call money and his shares were forfeited.
6
Pass necessary Journal entries for the above transactions in the books of Mukund Ltd.
21. Narmada Ltd. has an authorizedcapital of 10,00,000 divided into equity shares of ? 10 each. The company
ISsed aprospectus inviting applications for issuing 80,000 equity shares. The company received applications
for 75,000 equityshares. All calls were made and were duly received except the first and final call of Zper
share on 5,000 shares held by Arti. These shares were forfeited.
(a) Present the share capital in the Balance Sheet of the company as per Schedule I, Part 1of the Companies
Act, 2013.
4
(b) Also prepare Notes to Accounts" for the same.
23. (a) Vani Limited invited applications for issuing ? 1,00,000 equity shares of 10 each at apremium of 10%. The
amounts were payable as under: On Application and Allotment -t4 per share (including premium? 1)
On first call -4 per share
On second and final call-3 per share
Applications for ? 1,50,000shares were received and pro-rata allotment was made to all the applicants.
Excess application money was adjusted towards sums due on calls. Parth, ashareholder who had appled for
600 shares did not pay the first call. His shares were forfeited. The second and final call was not yet made.
Half of the forfeited shares were reissued at 8 per share fully paid up..
Journalise the above transactions in the books of Vani Limited by opening calls in arrears and calls in advance
account wherever necessary. 6
OR
(b) Pass necessary journal entries for forfeiture and reissue of forfeited shares in the following.
() Vipin Ltd. forfeited 10,000 shares of? 10 each issued at a premium ofR 1 per share, for
non-pavment of
second and final call of ?2 per share. Out of these, 60% of the shares were reissued at?7 per share fully
paid up. 3
(ü) Deepak Ltd. forfeited 800shares of ? 10each,, ? 8 per share called up, for non-paymernt of first call of? 2
per share. All the forfeited shares were reissued for 12 per share fully paid. 3
21. Atishyokti Ltd. company was registered with an authorized capital of 20,00,000 divided into 2,00,000 Equitv
Shares of 10each, payable 3 on application, 6 on allotment (including T1 premium) and balance on call. The
ompany offered 80,000shares for public subscription. All the money has been duly called and received except
allotment and call money on 5,000 shares held by Manish and call money on 4,000 shares held by Alok. Manish s
shares were forfeited and out of these 3,000 shares were re-issued 79 per share as fully paid up. Show share capital
in the books of the company. Also prepare notes to accounts.
 20% premium. Share
<3. The Directors of Rockstar Ltd. invited appications for 2,00,000 Shares of 10 each, issued atPublic had applied for
Was pavabie as t5 on appication,74 (incuding premium) on allotment and balance on call.
320,000shares out of which applications for 20,000 shares were rejected and remaining were alloted on pro-rata
basis.
Simba, an apphcant of 15,000 shares failed to pay allotment and call money. Hisshares were forfeited and out of
these 6,000 shares were reissued at a discount of 2 per share. Journalise. [6]
OR
Shaktimaan Ltd. invited applications for issuing 1,00,000 Shares of 10each at apremium of 2 per share. The
amount was payable as t4 on application (incuding premium); *5 on Allotment and balance on call. Applications
were received shares for 1,80,000 of which Appications for 30,000 shares were rejected and remaining appicants
were aliotted on pro-rata basis.
Manthan, holding 5,000 shares failed to pay call money and his shares were forfeited. Out of these 2000 shares
were re-issued at premium of 3 per share.
Prepare Cash Book and pass necessary entries. (6]
 an

21. Janta Ltd. had an authorized capital of 2,00,000equity shares of 10 each. The company offered to the publicfor
subscription 1,00,000 shares. Applications were received for 97,000 shares. The amount was payable as folows:
On application was 2per share, 4was payable each on allotment and first and final call. Ashareholder holding
600 shares failed to pay the allotment money. His shares were forfeited. The company did not make the first and
final call.
Present the share capital in the Balance Sheet of the company as per Schedule III of the Companies Act, 2013. Also
prepare Notes to Accounts. [4]
23. EF Ltd. invited applications for issuing 80,000 equity shares of ? 50 each at a premium of 20%. The amount was
payable as follows:
On Application : 20 per share (including premium 5)
On Allotment : 15 per share (including premium? 5)
On First Call : 15 per share
On Second and Final Call : Balance amount
alloment
Applications for 1,20,000 shares were received. Applicaions for 20 000 shares were rejected and pro-rata
was made to the remaining applicants.
Seema paid
Seema, holding 4,000 shares failed to pay the allotment money Afterwards the first call was made.
allotment money along with the first call. Sahai. who bad annlied for 2.500 shares failed to pay the first call money.
Sahaj's shares were forfeited and subsequentiy reissued to Geeta for z 60per share, ? 50 per share paid up. Final
call was not made.
Pass the necessary journal entries for the above transactions in the books of EF Ltd. by opening calls in arrears
account. (6]
OR
Zocon Ltd. issued a prospectus inviting applications for 5,00,000 equity (shares) of 10 each issued at a premium
of 10% payable as:
73 on Application
5on Allotment (including premium) and 3 on call.
Applications were received for 6,60,000 shares. Allotment was made as follows:
(a) Applicants of 4,00,000 shares were allotted in full.
(b) Applicants of 2,00,000 shares were allotted 50% on pro-rata basis.
(c) Applicants of 60,000shares were issued letters of regret.
A shareholder to whom 500 shares were allotted under category (a) paid full
amount on shares allotted to him
along with allotment money. Another shareholder to whom 1,000 shares were allotted
to pay the amount due on allotment. His shares were
under category (b) failed
immediately forfeited. These shares were then reissued at
{ 14 per share as ?7paid up. Call has not yet been made.
Journalise.
 an unexpected tax refund of ? 80,000.
21. Willow Lta. was registered with an authorized capitalof ? 10.00.000 divided into 1,00,000 equity shares of ? 10 each.
The company offered 80,000 shares for subscription to the public. out of which 75,000 shares were subscribed. All
amounts were received except the final call of 2 per share on 3.000 shares. Fill in the missing figures in the
Balance Sheet of Willow Ltd. as per the provisions of Schedule IIl. Part I of the Companies Act, 2013.
Balance Sheet as at 31st March, 2018 (An extract)
Particulars Note No.
EQUITY AND LIABILITIES
1. Shareholders' Funds:
1
(a) Share Capital

Notes to Accounts
Note No. Particulars
1 Share Capital:
Authorised Capital
Issued Capital
Subscribed Capital
Subscribed and fully paid:
shares of 10 each
Subscribed but not fully paid:
shares ofR 10 each
Less
 tollows:
23. X Ltd. has offered 50,000equity shares of 100 each at apremium of 20, payable as
Application 50
Allotment 40(incuding premium)
and Balance on first and final call.
The bank account of the company has received 35,00,000on account of share application money. account at the
in calls-in-arrears
X Ltd. decided to allot shares to all the applicants on pro-rata basis. The balance
time of allotment and first and final call amounted to 1.00.000 and 1,50,000 respectively. These shares were
forfeited and re-issued at 90 per share as fully paid up.
[6]
Journalize.
OR
Premier Tools Ltd. invited applications for issuing 2,00,000 equity shares of ? 10 each at a premium of * per share.
The amount was payable as follows:
Onapplication 5per share (including premium)
On allotment 3 per share
On first & final call-Balance
Applications were received for 2,50,000 shares. Applications for 10,000 shares were rejected and pro-rata allotment
was made to the remaining applications. Over payments received on application were adjusted towards sums due
on allotment.
All calls were made and dully received except allotment and first and final call from Naveen who applied for
7,200 shares. his shares were forfeited. Half of the forfeited shares were reissued for ? 48,000 as fully paid. Pass the
necessary journal entries for the above transactions in the books of Premier tools Ltd. Open calls-inarrears account
wherever required.
ZL. NK Ltd., a truck manufacturing company, is registered with an authorised capital of ? 1,00,00,000 divided into
equity shares of 100 each. The subscribed and paid up capital of the company is 50,00,000. The company decided
toopen technical schools in the Jhalawar district of Rajasthan to train the specially abied children of the area. It is
planning to provide them employment in its various production units and industries in the neighbourhood area.
To meet the capital expenditure requirements of the project, the company offered 20,000 shares to the public for
subscription. The shares were fully subscribed and paid.
Present the share capital in the Balance Sheet of the company as per the provisions of Schedule ll of the Companies
Act, 2013. 14]
<3. Concept Stationary Ltd. invited application for issuing 3,00,000 shares of ? 10each at a premium ofR3 per share
The amounts were payable as follows:
On application and allotment7per share.
On first &final callbalance (including premium of 3)
Appications were received for 4,00,000 shares and allotment was made as follows:
(i) To applicants for 80,000 shares80,000shares.
(ii) To applicants for 40,000 shares-nil
(iii) Balance of the applicants were allotted shares on pro-rata basis.
Excess money received with applications was adjusted towards sums due on first and final cal.
Amit, who belonged to category (i) and was allotted 4,000 shares and Veni, who belonged to category (ii) and was
allotted 4,400 shares failed to pay the first and final call money. Their shares were forfeited. The forfeited shares
were re-issued at per share fully paid-up.
Pass the necessary journal entries for the above transactions in the books of the company. 16j
OR
Zee Ltd. invited application for issuing 3,40,000 equity shares of 10 each at a premium of?5 per share. The
amount was payable as follows:
On application 4 per share (incuding 2 premium)
On allotment 5 per share (including 2 premium)
On First and Final call-Balance
Applications for 6,00,000 shares were received. Application for 1,80,000 shares were rejected and application
money was refunded. Shares were allotted on prorate basis to the remaining applicants. Excess money received
with appications was adjusted towards sum due on allotment.
Yamini who had applied for 2100 shares failed to pay allotment money and her shares were forfeited immediately.
Vani to whom 6800 shares were allotted paid her entire share money due on allotment. Afterwards First and Finl
call was made and was duly received. Out of the forfeited shares 850 shares were reissued to Vansh at8 per share
fully paid up.
Pass the necessary journal entries for the above transactions in the books of the company by opening calls-in
arrears and calls-in-advance accounts. [6]
21. Xansa Ltd. offered 22,000 equity shares of? 100 each to the public at a premium of 20 per share. The amount per
share was payable as R30 on application; 50(including premium)on allotment; and the balance on first and final
call.20,000 shares were subscribed by the public. All calls were made. A shareholder holding 1,000 shares failed to
pay the first and final callmoney. His shares were forfeited. Show 'Share Capital' in the Balance Sheet of Xansa
Ltd. Also prepare ´Notes to Accounts'.
[4]
Z3. KN. Ltd. invited applications for issuing 6,00,000 equity shares of 10each at a premium of ? 3 per share. The
amount was payable as follows:
On Appication and Allotment3per share
On Firss Call 4 per share
n Second and Final Call Balance (including premium)
Applications for 8,00,000 shares were received. Applications for 50,000 shares were rejec ted and the apphatiit
money was refunded. The shares were allotted to the remaining applicants as follows:
Category: Those who had applied for 4,00,000 share were allotted 3,00,000 shares on pro-rata basis.
Category I1: The remaining applicants were allotted the remaining shares on pro-rata basis.
Excess application money received with applications was adjusted towards sums due on first call. Rakesh to whon
6,000 shares were allotted failed to pay the first callmoney belonged to category I. His shares were forfeited.
The forfeited shares were re-issued at 13 per share fullypaid up.The second call was made afterwards and was
duly received.
Pass the necessary journal entries for the above transactions in the books of K.N. Ltd. [6]
OR

Denspar Ltd. invited applications for issuing 2,00,000equity shares of ? 10each at a premium of 20 per share. The
amount was payable as follows:
On Applications - 2 per share
On Allotment - 13 per share (including ?10 premium)
On First Call 7 per share (including ?5 premium)
On Final Call -8 per share (including ?5 premium)
Applications for 1,80,00 shares were received. Shares were allotted to all the applicants. Yogesh, a sharehoider
holding 5,000 shares paid his entire share money along with the allotment money. Vishesh, aholder of 7,00
shares, failed to pay the allotment money. Afterwards the first call was made. Vishesh paid the allotment money
along with the first call money. Samyesh, holding 2,000 shares did not pay the final call. Samyesh's shares were
forfeited immediately after the final call. Out of the forfeited shares, 1,500 shares were reissued at ?8 per share
fully paid up.
<. Narmada Ltd. has an authorized capital of 10,00,000 divided into equity shares of 10 each. The company
issued a prospectus inviting applications for issuing ? 80,000 equity shares. The company received applications for
75,000equity shares. All calls were made and were duly received except the first and final call of ? 2 per share on
5,000 shares held by Arti. These shares were forfeited.
(A) Present the share capital in the Balance Sheet of the company as per Schedule I, Part 1of the Companies Act,
2013.
(B) Also prepare Notes to Accounts" for the same.
 Pass the neCessary

23. KLN Ltd. invited applications for issuing 1,00,000shares of 10 each at a premium of 2 per share. The amount
was payable as follows:
On Application -3 per share (including premium 1)
On Allotment -4 per share(including premium ? 1)
On First Call -3 per share
On Second and Final Call- Balance amount follows:
Applications for 1,90,000 shares were received. Allotment was made to the applicants as
No.of Shares Applied No. of Shares Allotted
Category
50,000 40,000

1,00,000 60,000

Remaining applications were rejected.

failed to pay the amount due on
Rajat, a shareholder belonging to Category I who had applied for 2,500 shares,
allotment and first call. His shares were immediately forfeited.
3,000 shares failed to pay the first call and second
Reema, a shareholder belonging to Category II who was holding were reissued @8 per share fully paid up.
call money. Her shares were also forfeited. Afterwards 4,000 shares
These included all the forfeited shares of Reema. [6]
transactions in the books of 'KLN Ltd.'.
Pass the necessary journal entries for the above
OR
premium of 3 per share payable with application
BBG Ltd. had issued 1,00,000 equity shares of 10 each at a
blanks are left, you are required to complete these
money.While passing journal entries related to the issue, some
blanks. All India2016.
Amount Amount
LF. Dr. )
Date Cr. )
2015
Dr.
Jan Dr.
To
(Being application money received for 1,40,000 shares @6 per
share including premium)
Dr.
Jan 17 Equity Share Application A/c
To
To
To
To
(Being application money transferred to share capital account,
securities premium account refunded for 20,000shares for rejected
applications and balance adjusted towards money due on allotment
as shares were allowed on pro-rata basis)
Jan 17 Dr.
To
(Being allotment money due @4 per share)
Feb 20 Dr.
To
(Being balance allotment amount received)
Dr.
April 1
To
(Being first and final call money due)
April20 Dr.
Calls-in-Arrears A/c Dr. 3,000
To
(Being first and final callmoney received)
May 20 Dr.
To
To
(Being the shares forfeited on which first and final call was not
received)
June 15 Dr.
Dr. 3,000
To
(Being forfeited shares re-issued)
21. Unnati Ltd. was registered with an authorised capital of ? 8,00,000 divided into equity shares of 10 each. The
company issued a prospectus inviting applications for 60,000 equity shares. The company received applications
for 58,000 equity shares. All calls were made and were duly received except the second and final call of ? 3 per
share on 3,000 shares held by Manit. These shares were forfeited.
(A) 2013.
Present the hare capital in the Balance Sheet of the company as per Schedule II, Part I of the Companies Act,
(B) Also prepare "Notes to Accounts" for the same.
 entry for the above adjustments in the books of the firm. Show
23. Rolga Ltd. is having an authorised capital of 50.0O.000 divided into equity shares of 100 each.
offered 40,000 shares to the public. The amount payable was as follows:
The compar
On Application - 30 per share
On Allotment -40per share (including
On First and Final Call - 50 per premium)
share
Appications were received for 40,000 shares.
Ali sums were duly received except the
following:
Lal, a holder of 100 shares did not pay allotment and call money.
Pal, a holder of 200 shares did not pay call
money.
Ihe company forfeited the shares of Lal and Pal. Subsequently, the forfeited shares were
share as fully paid-up. Show the entries for the above transactions in the Journal of the reissued for 70 e
company. (6
OR
KS Ltd. invited applications for issuing l,60,000 equity
shares of 10 each at a premium of ? 6 per share. The
amount was payable as follows:
On Application4 per share (including
On AllotmentR6per share premium? 1per share)
(including premium ?3 per share)
One First and Final Call - Balance.
APPhcahons tor 3,20,000 shares were received. Applications for 80,000 shares were rejected and application
money refunded. Shares were allotted on pro-rata basis to the remaining applicants. Excess money received with
appications was adjusted towards sums due on allotment. Jain holding 800 shares failed to pay the allotment
money. His shares were forfeited immediately after allotment. Afterwards, the final call was made. Gupta who
had applied for 1,200shares failed to pay the finalcall. These shares were also forfeited. Out of the forfeited shares,
100 shares were re-issued at 8per share fully paid up. The re-issued shares included all the forfeited shares of
Jain.
Pass the necessary jourmal entries for the above transactions in the books of KS Ltd. [6]
21. Shiv Ltd. was registered with an authorised capital ofR 3,00,000divided into equity shares of 10 each. The company
issued a prospectus inviting applications for issuing ? 80,000 equity shares. The company received applications for
79,000equity shares. All calls ware made and duly received except the second and final call of 3 per share on
4,000 shares held byAnu. These shares were forfeited.
(A) Act,
Present the Share capital in the Balance Sheet of the company an per Schedule II,Part Iof the Companies
2013.
(B) Also prepareNotes to Accounts' for the same. [4]