According to Table A (16), if a sum called in respect of a share is not paid before or on the day fixed for payment, the person from whom the sum is due shall pay interest. What is the rate of interest on call-in-arrears?

When a company issues shares at a premium & a sum equal to aggregate amount of premium on those shares, it shall be transferred to

When a share is issued at its nominal value where par value is payable in installments through cash and no direct record is made in Cash Book and records for Application and allotment are made seperately:

ABC Ltd. issued 40,000 shares of Rs. 10 each to the public payable Rs. 2 on application, Rs. 4 on allotments and Rs. 4 on first call. Applications were received for 50,000 shares. Applications for 5,000 are rejected and application money is returned. Surplus of application money on 5,000 shares is utilized for allotment.

Which is the correct entry for the utilization of excess application money?

Which of the following is the wrong statement?

All forfeited shares were re-issued @ Rs. 100 each. Which of the following journal entries relating to forfeiture & re-issue is correct?

Amit Ltd. issued 6,000 equity shares of Rs. 10 each, payable as Re. 1 on application, Rs. 3 on allotment, Rs. 2 on first call and the balance on final call. But Ajay, who holds 300 equity shares, did not pay first and final call amount on these shares and Vijay, who holds 100 shares did not pay final call amount. All other amounts were duly received.

A Ltd. issued 3,000 equity shares of Rs. 10 each at a discount of 10%. On these shares, payments are to be made as follows: Rs. 2 on application, Rs.3 on allotment and Rs. 5 on first and final calls. Anil, who is a holder of 800 shares has not paid the first and final call, hence, his share have been forfeited and have been reissued at a discount of 10%.

If redemption is made by using divisible profits then an amount of profit so used for redeeming nominal value would be transferred to ………………. A/c.

A company issued 1,000 equity shares of Rs.10 each at a discount 10%. The final call of Rs.3 was not paid by 'Z' who holds 100 shares and his shares were forfeited. Half of the forfeited shares were reissued at Rs.8 per share fully paid.

What amount of Forfeited Shares A/c remains after the re-issue of shares?

A company issued 100 equity shares of Rs.100 each at a discount of 10% to Raj. Raj failed to pay first call of Rs. 20 and second & final calls of Rs. 30 per share. As such, Raj's shares were forfeited. Which is the correct journal entry for forfeiture of shares?

Which of the following statements is correct about the issue of shares at discount?

A Company has already issued 30,000 5% Redeemable Preference Shares of Rs. 100 each on which Rs. 80 per share has been received. The Company wants to redeem these shares at a premium of 5%. The company has sufficient profits for distribution, but to increase liquid assets, it issues the following:

1. 10,000 Equity Shares of Rs. 100 each at a Premium of 10%.
2. 10,000 5% debentures of Rs. 100 each. The above scheme was executed and full amount is received.

Which of the following is incorrect?

Z Limited made the following issue of shares : (i) To a vender who supplied machinery costing Rs.4, 40,000, 4000 Equity shares of Rs.100 each at a premium of 10%, (ii) 1000, 10% Preference shares of Rs.500 each at a premium of 5%, and (iii) 2000 Equity shares of Rs. 100 each at discount of 5%. (iv) 500 Equity shares of Rs. 100 each at par to the promoters.

Which one of the following entries about issue of shares is correctly recorded?

XYZ Ltd. forfeits 1000 shares of Rs. 10 each on which a shareholder has paid only Rs. 2 on application but failed to pay Rs. 3 on allotment and Rs. 3 on first and final calls. Which is the correct entry for forfeiture?

Tata Limited issued a prospectus offering 20,000 shares of Rs. 10 each at a par payable as follow: On application and allotment Rs. 2; on first call Rs. 4 and on final call Rs. 4. Sumesh, the holder of 1000 equity shares did not pay the amount due on both the calls. These 1000 shares were forfeited by the Board of Directors and these 1000 shares were subsequently reissued at Rs. 9 per share. Which is incorrect entry related to forfeiture and re-issue?

Capital Redemption Reserve account is available only for issue of fully paid……….

The Directors of Chirag Ltd. resolved that 2,000 equity shares of Rs. 10 each, Rs.7 paid be forfeited for non-payment of final call of Rs. 3. 1,000 of these shares were re-issued for Rs. 6 per share. After recording of above entries, following information comes out:

1. Rs. 14,000 charged to Forfeited Shares A/c at the time of forfeiture.

2. Rs. 4,000 charged to Forfeited Shares A/c at the time of re-issue.

3. Rs. 3,000 of Forfeited Shares A/c transferred to Capital Reserve A/c.

4. Rs. 6,000 of Forfeited Shares A/c remains after re-issue & shown in the liability side of the Balance Sheet.

   Which of the above information is wrong?

The following balances in the books of ABC Ltd: 10% Redeemable Preference Share Capital Rs. 4,00,000 General Reserve Rs. 90,000 Securities Premium Rs. 20,000 Profit and Loss (Cr.) Rs. 48,000 The Company redeems 6% Redeemable Preference Shares by issue of Equity Shares of Rs. 10 each. Fresh issue of shares is made in lots of 100 shares. Calculate the number of fresh shares to be issued.

A Joint Stock Company issued 20,000 Equity Shares of Rs. 10 each. Amount due on these shares was as under: Rs. 2 on Application (1^st January) Rs. 3 on Allotment (1^st February) Rs. 3 on First Call (1^st July) Rs. 2 on Final Call (1^st Nov) Ajit paid full amount on 1,000 shares upto Final Call along with First Call. Vijay paid First Call and Final Call money along with Allotment on 500 shares. According to rules, 6% interest is payable on amount received in advance.

What is the value of interest payable to Ajit on Call-in-Advance?

A Company issued 20,000 6% Redeemable Preference Shares of Rs. 100 each (fully paid-up). These shares are redeemable @ 10% Premium on 31^st Dec 2010. A provision of Rs. 40,000 is made every year out of divisible profits for redemption of these shares. Which of the following is wrongly passed?

Section 80 of The Companies Act lays down the following conditions for the redemption of preference shares:

1. Preference Shares must be fully paid.
2. Redeemable preference shares can be redeemed only out of divisible profits.
3. Premium on Redemption of shares be written off through profits or/and Securities Premium of the Company.
4. The amount of Securities Premium cannot be utilized for the payment of the nominal value of shares. Which of the above conditions is incorrect?

20,000 10% Redeemable Preference Shares of Rs. 100 each fully paid in SR Ltd. are outstanding. These shares are redeemed at Rs. 110 each & 1,000 Equity Shares of Rs. 100 each are issued at Rs. 120 for cash for the redemption. The balance of Profit and Loss Appropriation A/c is Rs. 12,00,000. What is the amount of Profits utilized to write off Premium on Redemption of 10% Redeemable Preference Shares A/c?

10,000 7% Redeemable Preference Shares of Rs. 10 each fully paid in XYZ Ltd. are outstanding. These shares are redeemed at Rs. 11 each & 1,000 Equity Shares of Rs. 100 each are issued at Rs. 115 for cash for the redemption.

How to write off the Premium on Redemption of 7% Redeemable Preference Shares?

The following balances in the books of RS Ltd.: 10% Redeemable Preference Share Capital Rs. 4,00,000 General Reserve Rs. 75,000 Securities Premium Rs. 30,000 Profit and Loss (Cr.) Rs. 60,000 Dividend Equalization Fund Rs. 40,000 Workmen Compensation Fund Rs. 25,000 The redemption was carried out on due date, assume that the Company raised necessary bank loan.

Calculate the amount transferred to Capital Redemption Reserve.