CLASS XII -2024

IMPORTANT QUESTIONS
ACCOUNTANCY
COMPANY ACCOUNTS
Issue of Debentures
Q1. Disha Ltd. purchased machinery from Nisha Ltd. and paid to Nisha Ltd. as follows:
(i) By issuing 10,000, equity shares of ₹ 10 each at a premium of 10%.
(ii) By issuing 200, 9% debentures of ₹ 100 each at a discount of 10%.
(iii) Balance by accepting a bill of exchange of ₹ 50,000 payable after one month.
Pass necessary journal entries in the books of Disha Ltd. for the purchase of machinery and making
payment to Nisha Ltd. (Purchase Price ₹ 1,78,000)
Q2. Venus Ltd., is a real estate company. To discharge its corporate Social Responsibility, it decided to
construct a night shelter for the homeless. The company took over assets of ₹ 10,00,000 and liabilities
of ₹ 1,80,000 of Cayns Ltd. for ₹ 7,60,000. Venus Ltd. issued 9% Debentures of ₹ 100 each at a
discount of 5% in full satisfaction of the purchase consideration in favour of Cayns Ltd.
Pass necessary journal entries in the books of Venus Ltd. for the above transactions.
Q3. A company took a loan of Rs.10,00,000 from Punjab National Bank and issued 10% debentures of
Rs.12,00,000 of Rs.100 each as a collateral security. Explain how you will deal with the issue of
debentures in the books of the company.

Q4. On 1stApril, 2015 P Ltd issued 6,000 12% Debentures of ₹ 100 each at par redeemable at a
premium of 7%. The debentures were to be redeemed at the end of third year. Prepare Loss on issue of
Debentures.
Q5. Pass necessary journal entries and prepare 9% debentures account for the issue of 7,500, 9%
debentures of ₹ 50 each at a discount of 6%, redeemable at a premium of 10%.
Q6. Pass the necessary journal entries for the issue of debentures in the following cases:
a. Issued ₹ 30,000, 10% Debentures of ₹ 100 each at Par, redeemable at par.
b. Issued ₹ 50,000, 10% Debentures of ₹ 100 each at discount of 5%, redeemable at par.
c. Issued ₹ 28,000, 10% Debentures of ₹ 100 each at premium of 15%, redeemable at par.
d. Issued ₹ 80,000, 10% Debentures of ₹ 100 each at par, redeemable at premium of 10%.
e. Issued ₹ 40,000, 10% Debentures of ₹ 100 each at discount of 5%, redeemable at
premium of 10%.
f. Issued ₹ 30,000, 10% Debentures of ₹ 100 each at premium of 10%, redeemable at
premium of 15%.
Q7. On 1.4.2015, J.K. Ltd. issued 8,000, 9% debentures of ₹ 1,000 each at a discount of 6%, redeemable
at a premium of 5% after three years. The company closes its books on 31st March every year. Interest
on 9% debentures is payable on 30th September and 31st Marchevery year. The rate of tax deducted at
source is 10%. Pass necessary journal entries for the issue of debentures and debenture interest for
the year ended 31.3.2016.

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 Accounting for Share Capital
Q1. Authorized capital of Suhani Ltd is ₹ 45,00,000 divided into 30,000 shares of ₹ 150 each. Out of
these company issued 15,000 shares of ₹ 150 each at a premium of ₹ 10 per share. the amount was
payable as follows:
₹ 50 per share on application, ₹ 40 per share on allotment (including premium), ₹ 30 per share on
first call and balance on final call. Public applied for 14,000 shares. All the moneywas duly received.
Prepare an extract of Balance Sheet of Suhani Ltd. as per Schedule III of the companies Act, 2013
disclosing the above information. Also prepare 'Notes to Accounts ' for the same.
Q2. ‘Tractors India Ltd.’ is registered with an authorized capital of ₹ 10,00,000 divided into 1,00,000
equity shares of ₹ 10 each. The company issued 50,000 equity shares at a premium of ₹ 5 per share. ₹
2 per share were payable with application, ₹ 8 per share including premium on allotment and the
balance amount on first and final call. The issue was fully subscribed and all the amount due was
received except the first and final call money on500 shares allotted to Balaram.
Present the ‘Share Capital’ in the Balance Sheet of ‘Tractors India Ltd.’ as per Schedule III of the
Companies Act, 2013. Also prepare Notes to Accounts for the same.
Q3. Alpha India Ltd. was registered with an authorised capital of ₹ 10,00,000 divided into 1,00,000
equity shares of ₹ 10 each. The company offered to the public for subscription 80,000 equity shares
payable per share as: ₹ 3 on application, ₹ 2 on allotment, ₹ 3 on first call and the balance on second
and final call. The issue was fully subscribed and all amounts due were received except the first and
final call money on 2,000 shares allotted to Chavi.
Her shares were forfeited.
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’.
Q4. ‘India Auto Ltd.’ is registered with an authorised capital of ₹ 7,00,00,000 divided into 7,00,000
shares of ₹ 100 each. The company issued 50,000 shares to the vendor for building purchased and
2,00,000 shares were issued to the public. The amount was payable as follows: On application and
allotment – ₹ 20 per share
On first call – ₹ 50 per share
On second and final call – The balance
All calls were made and were duly received except on 100 shares held by Rajani, who failedto pay the
second and final call. Her shares were forfeited.
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’.

Q5. On 1st April, 2012, Vishwas Ltd. was formed with an authorised capital of Rs. 10,00,000 divided
into 1,00,000 equity shares of Rs. 10 each. The company issued prospectus inviting applications for
90,000 equity shares. The company received applications for 85,000 equity shares. During the first
year, Rs. 8 per share were called. Ram holding 1,000 shares and Shyam holding 2,000 shares did not
pay the first call of Rs. 2 per share. Shyam's shares were forfeited after the first call and later on 1,500
of the forfeited shares were reissued at Rs. 6 per share, Rs. 8 called-up.
Show the following:
(a) Share capital in the Balance Sheet of the company as per Schedule III of the CompaniesACt, 2013.
(b) Also prepare 'Note to Accounts' for the same.

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Q6. Pass entries for forfeiture and re-issue in the following cases.
1. Vikram Ltd. forfeited 5,000 shares of Rahul, who had applied for 6,000 shares for non- payment of
allotment money of ₹ 5 per share and first and final call of ₹ 2 per share. Only application money of ₹
3 was paid by him. Out of these 3,000 shares were re-issued @ ₹ 12per share as fully paid. (₹ 10,800)
2. Ratan Ltd. forfeited 3,000 shares of ₹ 10 each (issued at ₹ 2 premium) for non-paymentof first call
of ₹ 2 per share. Final call of ₹ 3 per share was not yet made. Out of these 2,000 shares were re-issued
at ₹ 10 per share as fully paid. (₹ 10,000)
3. L Ltd. forfeited 470 Equity Shares of Rs. 10 each issued at a premium of Rs. 5 per share for non-
payment of allotment money of Rs. 8 per share (including share premium Rs. 5 per share) and the
first and final call of Rs. 5 per share. Out of these 60 Equity Shares were subsequently re-issued at Rs.
14 per share. (₹ 120)
4. Z Ltd. Forfeited 470 equity shares of Rs. 20 each issued at a premium of Rs. 3 per share for the non-
payment of allotment money of Rs. 8 (including premium Rs. 3) and first call of Rs. 5 per share. Final
call of 5 per share was not made. Out of these, 235 shares were reissued at Rs. 19 each fully paid. (₹
940)
5. X Ltd. forfeited 200 shares of ₹ 100 each, ₹ 70 called up, on which the shareholders had paid
application and allotment money of ₹ 50 per share. Out of these, 150 shares were reissued to Naresh
as ₹ 70 paid up for ₹ 60 per share. (₹ 6,000)
6. Q Ltd. forfeited 180 shares of ₹ 10 each, ₹ 8 called up, issued at a premium of ₹ 2 per share to R for
non-payment of allotment ₹ 5 per share (including premium). Out of these, 160 shares were reissued to
Sanjay as ₹ 8 paid up for ₹ 6 per share. (₹ 480)
Q7. ‘KLN Ltd.’ invited applications for issuing 1,00,000 shares 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
Application for 1,90,000 shares were received. Allotment was made to the applicants as follows:
Category No. of Shares Applied No. of Shares Allotted
I 50,000 40,000
II 1,00,000 60,000
Remaining applications were rejected.
Rajat, a shareholder belonging to Category I who had applied for 2,500 shares, failed to pay the amount
due on allotment and first call. His shares were immediately forfeited.
Reema, a shareholder belonging to Category II who was holding 3,000 shares failed to pay the first
call and second call money. Her shares were also forfeited. Afterwards 4,000 shares were reissued @
₹ 8 per share fully paid up. These included all the forfeited sharesof Reema.
Pass necessary journal entries for the above transactions in the books of ‘KLN Ltd.’ (₹ 9,750)
Q8. Denspar Ltd. invited applications for issuing 2,00,000 equity shares of ₹ 10 each at a premium of
₹ 20 per share. The amount was payable as follows:
On Application – ₹ 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)
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Applications for 1,80,000 shares were received. Shares were allotted to all the applicants. Yogesh, a
shareholder holding 5,000 shares paid his entire share money along with the allotment money.
Vishesh, a holder of 7,000 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.
Pass the necessary journal entries for the above transactions in the books of Denspar Ltd. (₹7,500)

Q9. X Ltd. invited applications for issuing 50,000 equity shares of ₹ 10 each. The amountwas payable as
follows:
On Application : ₹ 2 per share
On Allotment : ₹ 2 per share
On First Call : ₹ 3 per share
On Second and Final Call : Balance amount
Applications for 70,000 shares were received. Applications for 10,000 shares were rejected and the
application money was refunded.
Shares were allotted to the remaining applicants on a pro-rata basis and excess money received with
applications was transferred towards sums due on allotment and calls, if any.
Gopal, who applied for 600 shares, paid his entire share money with application. Ghosh, who had
applied for 6,000 shares, failed to pay the allotment money and his shares were immediately
forfeited. These forfeited shares were re-issued to Sultan for ₹ 20,000; ₹ 4 per share paid up. The
first call money and the second and final call money was called and duly received.
Pass necessary journal entries for the above transactions in the books of X Ltd. Open Calls-in-Advance
Account and Calls-in-Arrears Account wherever necessary. (₹ 12,000)

Q10. A Ltd. invited applications for issuing 1,00,000 shares of ₹ 10 each at a premium of ₹ 1 per share.
The amount was payable as follows :
On Application : ₹ 3 per share
On Allotment : ₹ 3 per share (including premium)
On First Call : ₹ 3 per share
On Second and Final Call : Balance amount
Applications for 1,60,000 shares were received. Allotment was made on the following basis :
(i) To applicants for 90,000 shares : 40,000 shares
(ii) To applicants for 50,000 shares : 40,000 shares
(iii) To applicants for 20,000 shares : full shares
Excess money paid on application is to be adjusted against the amount due on allotment and calls.

Rishabh, a shareholder, who applied for 1,500 shares and belonged to category (ii), did not pay
allotment, first and second and final call money. Another shareholder, Sudha, who applied for 1,800
shares and belonged to category (i), did not pay the first and second and final call money. All the
shares of Rishabh and Sudha were forfeited and were subsequently re-issued at ₹ 7 per share fully
paid.

Pass the necessary journal entries in the books of A Ltd. Open Calls-in-Arrears Account and Calls-in-
Advance Account wherever required. (₹ 3,100)

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