"Lucky Ltd. invited applications for 50,000 equity shares of Rs. 10 each, payable as Rs 2 on application, Rs. 3 on allotment and the balance on first and final call Applications were received for 1,50,000 shares and the share were allotted on a pro-rata basis, The excess application money was to be adjusted against allotment only. Maya, a holder who had applied for 1,500 shares, failed to pay the call money and her share were forfeited and were reissued a 8 per share as fully paid" Ol. What amount of bank received by the Lucy Ltd. 02: What amount of Share capital will be shown in the balance sheet of Lucky Ltd Q3: What amount will be transfer to capital reserve account

"Lucky Ltd. invited applications for 50,000 equity shares of Rs. 10 each, payable as Rs 2 on application, Rs. 3 on allotment and the balance on first and final call Applications were received for 1,50,000 shares and the share were allotted on a pro-rata basis, The excess application money was to be adjusted against allotment only. Maya, a holder who had applied for 1,500 shares, failed to pay the call money and her share were forfeited and were reissued a 8 per share as fully paid" Ol. What amount of bank received by the Lucy Ltd. 02: What amount of Share capital will be shown in the balance sheet of Lucky Ltd Q3: What amount will be transfer to capital reserve account

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company invited applications for 1,00,000 shares of 10 each payable 23 on application, *3 on allotment, *2 on first call and 2 on final call. Applications were received for 1,25,000 shares and all were allotted on pro-rata basis. Anandi holding 6.000 shares failed to pay allotment money and her shares were forfeited immediately and half of these shares were re-issued immediately at 36 paid up. Kusum holding 10,000 shares failed to pay the first call money and her shares were immediately forfeited and 5,000 of these shares were re-issued as fully paid up. Final call will be called on how many shares?
Joy Ltd issued 100000 equity shares of Rs.10 each. The amount was payable as follows: On application - Rs.3/share, On allotment – Rs.4, On first call the balance. Application for 95000 shares were received and shares were allotted to all the applicants. Soni to whom 500 shares were allotted failed to pay allotment money and Christo paid his entire amount due including the amount die on first and final call on the 750 shares allotted to him along with the allotment. The amount received on allotment was: 380000 378000 O 380250 O 378250
A company issued 10000 equity shares of Rs. 100 each. The payment was called upon as under: On Application- Rs. 30; On Allotment - Rs. 30; On I Call - Rs. 20; On II Call - Rs. 20; On Final Call - Rs. 20. X, holder of 1000 shares failed to pay Il and Final Call and his shares were forfeited. Give entry for issue and forfeiture of share. Also give journal entries for forfeiture, if: i. Shares of X are re-issued to Z for Rs. 80 as fully paid-up. ii. Shares of X are re-issued to Z for Rs. 120 as fully paid-up.
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ABC Ltd. issued a prospectus for inviting application from the public for 10,000 equity shares of" $ 10 each. The amounts were payable as follows: $3 on Application, $2 on Allotment & the balance as and when called. Applications were received for 12,000 shares & the allotment was made as follows: Full applications for 8,000 shares 2,000 shares shares to remaining applicants and the excess application money is to be adjusted towards allotment. totally reject applications for 2,000 shares Pass Journal entries in the books of the company assuming that all allotment money was received and the call was not made.
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investors of ril have a chance to but ril shares at rs.1,257 as compared to its present market price of rs.1,433.existing shareholders who held ril shares in their demat account on may 14 are eligible to apply for the issue in 1:15 ratio.this means for every 15 shares held by them they can apply for one share at ra.1,257 apiece.Also,you do not have to pay the entire Rs.1,257 at one go.At the time of application,you have to pay 25% of the amount i.e. Rs.314,25 another 25% of the amount i e. will be paid by the investor in May 2021( after 12 months) and the remaining 50% i.e. Rs.628.50 will be paid in November 2021(after 18 months) on-call by the company.If discount rate is 10% what will be the effective cost for this plan?
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Southern Cross Ltd issued a prospectus for the issue of 150,000, $6 shares on 1 January 2022. The prospectus specified that $4 was payable on application, with the balance payable on the allotment. By 2 February 2022, the company received applications for a total of 170,000 shares. On 4 February 2022, Southern Cross Ltd allotted 150,000 shares. the Directors of Southern Cross Ltd decided to refund the money in relation to unsuccessful applications. All of the allotment money was received by 20 February 2022. Required: Prepare the journal entries to account for the issue of shares by Southern Cross Ltd.
Lacan Products Ltd. invited applications for 500,000 ordinary shares of $1 each at $1.30, payable as 40c on application. 70c (including 30c premium) on allotment, and 20c on first and final call, 4 months after allotment. Applications for all the shares were received and the shares duly allotted. All the allotment money was received but the holder of 1000 shares failed to meet the call and forfeited his shares in accordance with the articles of the company. All the forfeited shares were subsequently reissued as fully paid shares at 80c each. Required: Prepare the following accounts to record the issue of the shares. Application and allotment account Bank account Share Capital and Call accounts Share premium account and investment own shares account
1. On 1 April 2019, Magnolia Ltd was incorporated and a prospectus was issued inviting applications for 100 000 shares, at an issue price of $10, payable $5 on application, $2.50 on allotment and $1.25 on calls to be made after the date of allotment.By 30 April, applications were received for 120 000 shares. On 3 May, the directors allotted 100 000 ordinary shares to the applicants in proportion to the number of shares for which applications had been made. The surplus application money was offset against the amount payable on allotment. The balance of the allotment money was received by 10 May. Share issue costs of $800 were also paid on the same date.The calls were made on the dates stated in the prospectus, but the holders of 15 000 shares did not pay call.On 10 March 2017, as provided by the company’s constitution, the directors forfeited the 15 000 shares on which calls were unpaid. The constitution does not provide for refund of any balance in the forfeited shares account after…
ABC Ltd, issued a prospectus for inviting application from the public for 10,000 equityshares of " $ 10 each. The amounts were payable as follows: $3 on Application, $2 onAllotment & the balance as and when called.Applications were received for 12,000 shares & the allotment was made as follows:Full applications for 8,000 shares2,000 shares shares to remaining applicants and the excess application money isto be adjusted towards allotment.totally reject applications for 2,000 sharesPass Journal entries in the books of the company assuming that all allotment money wasreceived and the call was not made.