Here are some practical questions related to the issue of shares chapter in Class 12th CBSE board accountancy:
1. ABC Ltd issued 1,00,000 equity shares of Rs. 10 each at a premium of Rs. 5 per share. The company received applications for 1,20,000 shares. Calculate the amount of excess money that will be refunded to the applicants.
Solution:
Calculation of excess money to be refunded:
Total number of shares applied for = 1,20,000
Total number of shares issued = 1,00,000
Amount received on application = (1,20,000 x 10) = Rs. 12,00,000
Amount received on allotment = (1,00,000 x 5) = Rs. 5,00,000
Total amount received = Rs. 17,00,000
Amount to be refunded = (20,000 x 15) = Rs. 3,00,000
Hence, the amount of excess money that will be refunded to the applicants is Rs. 3,00,000.
2. XYZ Ltd issued 10,000 preference shares of Rs. 100 each at a premium of 10% payable as follows: Rs. 25 on application, Rs. 40 on the allotment (including premium) and the balance in the first and final call. The company received applications for 12,000 shares. Calculate the amount of excess money that will be carried forward.
Solution:
Calculation of excess money to be carried forward:
Total number of shares applied for = 12,000
Total number of shares issued = 10,000
Amount received on application = (12,000 x 25) = Rs. 3,00,000
Amount received on allotment = (10,000 x 110%) = Rs. 11,000
Total amount received = Rs. 3,11,000
Amount to be carried forward = (2,000 x 110%) = Rs. 2,20,000
Hence, the amount of excess money that will be carried forward is Rs. 2,20,000.
Total number of shares issued = 10,000
Amount received on application = (12,000 x 25) = Rs. 3,00,000
Amount received on allotment = (10,000 x 110%) = Rs. 11,000
Total amount received = Rs. 3,11,000
Amount to be carried forward = (2,000 x 110%) = Rs. 2,20,000
Hence, the amount of excess money that will be carried forward is Rs. 2,20,000.
3. PQR Ltd issued 50,000 equity shares of Rs. 10 each at a discount of 10%. The company received applications for 60,000 shares. Calculate the amount of discount to be written off.
Solutions:
Calculation of discount to be written off:
Total number of shares applied for = 60,000
Total number of shares issued = 50,000
Amount received on application = (60,000 x 9) = Rs. 5,40,000
Amount received on allotment = (50,000 x 10) = Rs. 5,00,000
Total amount received = Rs. 10,40,000
Amount of discount = (50,000 x 1) = Rs. 50,000
Discount to be written off = (50,000/10) = Rs. 5,000
Hence, the amount of discount to be written off is Rs. 5,000.
4. MNO Ltd issued 5,000 preference shares of Rs. 100 each at a premium of 10% payable as follows: Rs. 30 on application, Rs. 40 on the allotment (including premium), and the balance in the first and final call. The company forfeited 500 shares for non-payment of allotment money. Calculate the amount of share forfeited.
Solution:
Calculation of the amount of share forfeited:
Total amount received on application = (5,000 x 30) = Rs. 1,50,000
Total amount received on allotment = (5,000 x 110%) = Rs. 55,000
Total amount received = Rs. 2,05,000
Amount to be forfeited = (500 x 130) = Rs. 65,000
Hence, the amount of share forfeited is Rs. 65,000.
Total amount received on application = (5,000 x 30) = Rs. 1,50,000
Total amount received on allotment = (5,000 x 110%) = Rs. 55,000
Total amount received = Rs. 2,05,000
Amount to be forfeited = (500 x 130) = Rs. 65,000
Hence, the amount of share forfeited is Rs. 65,000.
5. STU Ltd issued 1,00,000 equity shares of Rs. 10 each at a premium of Rs. 5 per share. The company received applications for 1,20,000 shares. The company allotted 1,00,000 shares to the applicants. Calculate the amount of money to be transferred to the capital reserve account.
Solution:
Calculation of money to be transferred to capital reserve account:
Total amount received on application = (1,20,000 x 10) = Rs. 12,00,000
Total amount received on allotment = (1,00,000 x 5) = Rs. 5,00,000
Total amount received = Rs. 17,00,000
Amount to be transferred to capital reserve account = (1,00,000 x 5) = Rs. 5,00,000
Hence, the amount of money to be transferred to the capital reserve account is Rs. 5,00,000.
6. ABC Ltd issued 1,00,000 equity shares of Rs. 10 each at a premium of Rs. 5 per share. The company received applications for 1,20,000 shares. Allotment was made on pro-rata basis to the applicants. Oversubscribed applicants were given shares in full and the remaining applicants were given 2,000 shares. Calculate the amount of excess money that will be refunded to the applicants.
Solution:
Calculation of excess money refunded:
Total applications received = 1,20,000 shares
Shares allotted = 1,00,000 shares
Excess applications = 20,000 shares
Pro-rata allotment = 1,00,000/1,20,000 = 5/6
Allotment to excess applicants = 20,000 x 5/6 = 16,666.67 shares
Allotment to remaining applicants = 2,000 shares
Total amount received = (1,00,000 x 10) + (1,00,000 x 5) = Rs. 15,00,000
Total allotment money = (1,00,000 x 10) + (16,666.67 x 10) = Rs. 11,66,666.70
Excess money received = Rs. 15,00,000 - Rs. 11,66,666.70 = Rs. 3,33,333.30
Excess money refunded = Rs. 3,33,333.30 - (2,000 x 10) = Rs. 3,13,333.30
Therefore, the amount of excess money refunded to the applicants is Rs. 3,13,333.30.
7. PQR Ltd issued 20,000 8% preference shares of Rs. 100 each at a premium of 20% payable as follows: Rs. 30 on application, Rs. 50 on allotment (including premium) and the balance in the first and final call. The company received applications for 25,000 shares. Allotment was made on the basis of first-come-first-served. Excess money was refunded to the applicants. Calculate the amount of excess money refunded.
Solution:
Calculation of excess money refunded:
Total applications received = 25,000 shares
Shares allotted = 20,000 shares
Excess applications = 5,000 shares
Total allotment money received = (20,000 x 120) = Rs. 24,00,000
Excess money received = (5,000 x 120) - (5,000 x 30) = Rs. 6,00,000
Excess money refunded = Rs. 6,00,000 - (5,000 x 20) = Rs. 5,00,000
Therefore, the amount of excess money refunded to the applicants is Rs. 5,00,000.
8. MNO Ltd issued 10,000 equity shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows: Rs. 30 on application, Rs. 50 on allotment (including premium) and the balance in the first and final call. The company received applications for 20,000 shares. Allotment was made on the basis of pro-rata. Calculate the amount of money to be transferred to the capital reserve account.
Solutions:
Calculation of money transferred to the capital reserve account:
Total applications received = 20,000 shares
Shares allotted = 10,000 shares
Excess applications = 10,000 shares
Pro-rata allotment = 10,000/20,000 = 1/2
Allotment to excess applicants = 10,000 x 1/2 = 5,000 shares
Total allotment money received = (10,000 x 120) = Rs. 12,00,000
Money transferred to capital reserve account = (10,000 x 20) + (5,000 x 20) = Rs. 3,00,000
Therefore, the amount of money transferred to the capital reserve account is Rs. 3,00,000.
9. STU Ltd issued 5,000 10% preference shares of Rs. 100 each at a premium of 10% payable as follows: Rs. 25 on application, Rs. 40 on allotment (including premium) and the balance in the first and final call. The company forfeited 500 shares for non-payment of the first call. The forfeited shares were reissued at Rs. 85 per share fully paid-up. Calculate the amount of gain or loss on reissue of shares.
Solution:
Calculation of gain or loss on reissue of shares:
Amount received on forfeiture of shares = 500 x (100 + 10) = Rs. 55,000
Less: Amount called up on forfeited shares = 500 x 25 = Rs. 12,500
Net amount received on forfeiture of shares = Rs. 42,500
Gain on reissue of shares = (500 x 85) - Rs. 42,500 = Rs. 17,500
Therefore, the amount of gain on reissue of shares is Rs. 17,500.
Issue of Shares, Class 12th CBSE Board, Accountancy, Practical Questions, Solutions.
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