CORPORATE ACCOUNTING AND REPORTING

Question Paper 4 Pages

Bengaluru City University

Bachelor of Business Administration

Contributed by

Prajwal Hallale

CORPORATE ACCOUNTING AND REPORTING, 2ND SEMESTER BBA, BANGALORE CENTRAL UNIVERSITY

Vinutha T.N, Assistant Professor, MES Institute of Management
1

Questions of Unit 1 – Issue of Shares
1. Raghavendra Co. Ltd issued 20,000 equity shares of Rs. 10 each payable as follows:
Rs. 2 on Application
Rs. 4 on Allotment
Rs. 3 on First Call and
Balance in the Final Call
All the shares were duly subscribed and the amount were fully received.
Pass necessary journal entries.

2. Ashok Co. Ltd. issued 10,000 equity shares of Rs. 10 each payable as follows:
Rs. 2 on Application
Rs. 3 on Allotment
Rs. 5 on First and Final Call
9,000 shares were subscribed by the public. All the shares were allotted and the money
duly received.
Pass necessary journal entries.

3. The Vikas Co. Ltd. with a registered capital of Rs.1,00,000. The Company issued 5,000
equity shares of Rs. 10 each payable as follows:
Rs. 2 on Application
Rs. 2 on Allotment
Rs. 3 on First Call and
Rs. 3 on Final Call
All the shares were subscribed and money duly received except on First Call on 500
shares and Final Call on 1,000 shares.
Pass necessary journal entries and Ledger Accounts.

4. PQR Co. Ltd. issued 10,000 equity shares of Rs. 10 each. The public subscribed 8000
shares and were fully allotted.
Rs. 2 on Application
Rs. 2 on Allotment
Rs. 3 on First Call and
Rs. 3 on Final Call
All shares were subscribed and money duly received except 500 shares on Final Call.
Pass necessary Journal entries and Ledger accounts.

5. ABC Co. Ltd. issued 20,000 equity shares of Rs. 10 each at a premium of Rs.1 per
share, payable as follows:
Rs. 2 on Application
Rs. 4 on Allotment (including premium)
Rs. 3 on First Call and
Rs. 2 on Final Call.
All shares were subscribed and money duly received. Pass necessary journal entries and
Prepare Bank A/c.

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CORPORATE ACCOUNTING AND REPORTING, 2ND SEMESTER BBA, BANGALORE CENTRAL UNIVERSITY

Vinutha T.N, Assistant Professor, MES Institute of Management
2

6. Suguna Mills Ltd. issued 10,000 equity shares of Rs. 10 each at a premium of Rs.2 per
share, payable as follows:
Rs. 2 on Application
Rs. 5 on Allotment (including premium)
Rs. 5 on First Call and Final Call.
The shares were fully subscribed and money duly received except on First and Final
Call on 1,000 shares. Pass necessary journal entries.

7. Kaveri Co. Ltd issued 6,000 equity shares of Rs. 100 each at a discount of Rs.5 per
share payable as follows:
Rs. 20 on Application
Rs. 40 on Allotment
Rs. 35 on First Call and
All the shares were duly subscribed and the amount were fully received.
Pass necessary journal entries.

8. Mysore Co. Ltd issued 20,000 equity shares of Rs. 100 each at a discount of Rs.5 per
share payable as follows:
Rs. 20 on Application
Rs. 35 on Allotment
Rs. 20 on First Call and
Rs. 20 on Final Call
All the shares were duly subscribed and the amount duly received except on First Call
on 2000 shares and Final call on 1,000 shares.
Pass necessary journal entries.

9. Arvind Co. Ltd issued 10,000 equity shares of Rs. 100 each at par, payable as follows:
Rs. 20 on Application
Rs. 30 on Allotment
Rs. 25 on First Call and
Rs. 25 on Final Call
12,000 shares were applied by the public. The Company received the amount on all the
calls except on Final call on 100 shares.
Pass necessary journal entries.

10. UB Co. Ltd issued 20,000 equity shares for public subscription at Rs.10 each at
premium of Rs.2, payable as follows:
Rs. 2 on Application
Rs. 5 on Allotment (including premium)
Rs. 2 on First Call and
Rs. 3 on Second and Final Call
Applications were received for 30,000 shares. 20,000 shares were allotted and the
excess applications money received was returned. Company made all the calls and the
money were duly received except on 1,000 shares on Second and Final Call.
Pass necessary journal entries and Bank A/c.

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CORPORATE ACCOUNTING AND REPORTING, 2ND SEMESTER BBA, BANGALORE CENTRAL UNIVERSITY

Vinutha T.N, Assistant Professor, MES Institute of Management
3

11. Vinay Co. Ltd issued 60,000 equity shares of Rs.100 each payable as follows:
Rs. 20 on Application
Rs. 30 on Allotment
Rs. 20 on First Call and
Rs. 30 on Final Call
The company received 75,000 on applications of which 5,000 applications were
rejected and the application money on 10,000 application were adjusted towards
allotment. The dues were duly received as and when the calls were made, except 2,000
shares Final Call.
Pass necessary journal entries.

12. ABC Co. Ltd issued 20,000 equity shares of Rs.10 each payable as follows:
Rs. 2 on Application
Rs. 3 on Allotment
Rs. 3 on First Call and
Rs. 2 on Final Call
Applications were received for 30,000 shares. The Directors allotted the shares as
follows:
a) Application of 15,000 shares were allotted in full
b) Application of 10,000 shares were allotted 5,000 shares
c) Applications of 5,000 shares were rejected
All the calls were made and the money duly received except final call on 500 shares
Pass necessary journal entries.

13. Sun Ltd issued 20,000 equity shares of Rs.10 each payable as follows:
Rs. 2 on Application
Rs. 3 on Allotment
Rs. 5 on First Call and Final Call (3 months after allotment)
The company received full subscription and the amount were duly received as and when
the calls were made. One Shareholder holding 500 shares paid the call money along
with the Allotment money. Directors have decided to allow interest on calls in advance
at 6% p.a.
Pass necessary journal entries.

14. XYZ Co. Ltd. registered with authorised capital of Rs.5,00,000 in shares at
Rs.100/share. 3000 of which were issued payable as follows:
Rs.12.5 on Application
Rs.12.5 on allotment
Rs.25, 3 months after allotment and
Balance to be called up as and when required.
All the shares up to allotment were duly received but as regards to call of Rs.25, a
shareholder holding 100 shares did not pay the amount due. Another shareholder who
was allotted 150 shares paid them up in full.
Pass necessary journal entries.

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CORPORATE ACCOUNTING AND REPORTING, 2ND SEMESTER BBA, BANGALORE CENTRAL UNIVERSITY

Vinutha T.N, Assistant Professor, MES Institute of Management
4

15. Star Ltd. issued 4,000 shares of Rs.100/share. 3000 of which were issued payable as
follows:
Rs.12.5 on Application
Rs.12.5 on allotment
Rs.25, 3 months after allotment and
Balance to be called up as and when required.
All the shares up to allotment were duly received but as regards to call of Rs.25, a
shareholder holding 150 shares did not pay the amount due. Another shareholder who
was allotted 100 shares paid them up in full.
Pass necessary journal entries.

16. On 1
st
April 2014, the directors of Lakshmi Trading Co. resolved that 1,000 equity
shares of Rs.10 each are to be forfeited for the non-payment of final call money of Rs.3
per share. On 1
st
May 2014, the above forfeited shares were reissued at Rs.8 per share
as fully paid up. Pass necessary journal entries.

17. Bharath Ltd. issued 10,000 equity shares of Rs.10 each. All the money was duly
received except the final call on 200 shares at Rs.3 per share. The Director forfeited the
shares and reissued at Rs.7 per share. Pass necessary journal entries.

18. On 1
st
January 2013, the directors of Moonlight Co. Ltd. resolved that 1,000 equity
shares of Rs.100 each are to be forfeited for the non-payment of First and Final call
money of Rs.20 and Rs.30 each respectively. On 1
st
February 2013, the above forfeited
shares were reissued at Rs.75 per share as fully paid up. Pass necessary journal entries.

19. Hindustan Co. Ltd. issued 10,000 equity shares of Rs.100 each payable as follows:
Rs.25 on Application
Rs.25 on allotment and
Balance on First and Final Call at Rs.25 each.
Out of these, 400 shares were forfeited for non-payment of First and Final Call. The
forfeited shares were reissued at Rs.120 per share

20. The Bangalore Infotech Ltd. was newly formed with an authorised capital of
Rs.5,00,000 divided into equity shares of Rs.10 each. The Company issued for public
subscription 20,000 shares at a premium of Rs.2, payable as follows.
On Application – Rs.2
On Allotment – Rs. 5 (including premium of Rs.2)
On First Call – Rs. 2
On Final Call – Rs.3

Applications were received for 30,000 shares but only 20,000 shares were allotted and
excess application money received is returned. The Company made all the calls and the
money were duly received except the Final call on 1,000 shares. These shares were
forfeited and later reissued at Rs.8 per share. Pass necessary journal entries.

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