VIDYA PEETAM

WORKING NOTES
WORKSHEET - 5
NAME: CLASS:
1. Lotus Ltd. invited applications for issuing 80,000 equity shares of ₹10 each at a premium of ₹4 per share. The amount
was payable as follows:
On application ₹5 per share and
On allotment ₹9 per share (included premium).
Applications were received for 1, 40, 000 shares and allotment was made to all applicants on pro-rata basis. Money
overpaid on applications was adjusted towards sums due on allotment. Rajiv, who had applied for 1,400 shares, failed
to pay the allotment money. His shares were forfeited. Later on, these forfeited shares were reissued at ₹9 per share
as fully paid up. Pass necessary journal entries for the above transactions in the books of Lotus Ltd.

2. Yash Ltd. invited applications for 50,000 equity shares of ₹ 10 each at a premium of 10%. The amount was payable as
follows :
On application ₹ 3 per share;
On allotment (including premium) ₹ 3 per share;
On first and final call, the balance amount.
Applications were received for 1,20,000 shares and shares were allotted on pro-rata basis to all applicants. The excess
money received on application was to be adjusted towards sums due on allotment. Application money in excess of
sums due on allotment was refunded. A shareholder who applied for 6,000 shares could not pay the first and final
call money and his shares were forfeited. The forfeited shares were reissued for ₹60,000 fully paid up. Pass necessary
journal entries for the above transactions in the books of Yash Ltd.

3. Alpha Ltd. issued 10,000 shares of ₹ 10 each payable as:

₹2 on application,
₹3 on allotment,
₹3 on first call and
₹2 on second and final call.
Applications were received for 15,000 shares. The shares were allotted on a pro rata basis to the applicants of 12,000
shares. All shareholders paid the allotment money except one shareholder who was allotted 200 shares. These shares
were forfeited. The first call was made thereafter. The forfeited shares were reissued @₹9 per share as ₹8 paid-up
after first call. The second and final call was not yet made. Pass entries.

4. Arvind Ltd. issued 20,000 shares of ₹10 each at a premium of ₹2 per share payable as:
On Application - ₹6
On Allotment - ₹3 (including premium)
On First Call - ₹2
On Second and Final Call -₹1
Applications were received for 30,000 shares. Applications for 6,000 shares were rejected and pro rata allotment was
made to the remaining applicants. Abhay, who was allotted 500 shares failed to pay allotment money and on his
subsequent failure to pay the first call his shares were forfeited. Of these, 300 shares were reissued as fully paid-up
for ₹6 per share. Journalise the transactions.
5. Alfa Ltd. invited applications for issuing 75,000 equity shares of 10 each. The amount was payable as follows
On Application and Allotment - ₹4 per share,
On First Call - ₹3 per share,
On Second and Final Call - Balance.
Applications for 1,00,000 shares were received. Shares were allotted to all the applicants on pro rata basis and excess
money received with applications was transferred towards sums due on first call. Vibha who was allotted 750 shares
failed to pay the first call. Her shares were immediately forfeited. Afterwards the second call was made. The amount
due on second call was also received except on 1,000 shares applied by Monika. Her shares were also forfeited. All
the forfeited shares were reissued to Mohit for 9,000 as fully paid-up. Pass necessary Journal entries in the Books of
Alfa Ltd. for the above transactions

6. Himalaya Company Limited issued for public subscription 1,20,000 equity shares of ₹ 10 each at a premium for 2 per
share payable as under.
On Application - ₹3 per share
On Allotment (including premium) - ₹5 per share
On First call - ₹2 per share
On Second and Final call - ₹2 per share
Applications were received for 1,60,000 shares. Allotment was made on pro rata basis. Excess money on application
was adjusted against the amount due on allotment. Rohan to whom 4,800 shares were allotted, failed to pay for the
two calls. These shares were subsequently forfeited after the second call was made. All the shares forfeited were
reissued to Teena as fully paid at 7 per share. Record Journal entries.

7. SaReGaMa Ltd. invited applications for issuing 80,000 equity shares of ₹ 100 each at a premium of ₹ 10. The amount
was payable as follows:
On Application - ₹30
On Allotment - ₹30 (including a premium of ₹10)
On First Call - ₹30
On Final Call - balance
Applications of 1,20,000 shares were received. Allotment was made on pro rata basis to all applicants. Excess money
received on application was adjusted on sums due on allotment. Dhwani, who was allotted 1,600 shares, failed to pay
allotment money and Sargam who applied for 6,000 shares did not pay first call money. These shares were forfeited
immediately after first call, 2,000 of these shares including all shares of Dhwani were issued to Tarang for ₹95 per
share as ₹80 paid-up. Pass necessary Journal entries in books of Saregama Ltd. if final call has not been made.

8. XYZ Ltd. is registered with an authorised capital of ₹2,00,000 divided into 2,000 shares of ₹100 each of which, 1,000
shares were offered for public subscription at a premium of ₹5 per share, payable as:
On Application - ₹10 per share
On Allotment - ₹25 (including premium)
On First Call - ₹40 per share
On Final Call - ₹30 per share
Applications were received for 4,800 shares, of which applications for 300 shares were rejected outright: the rest of
the applications were allotted 1,000 shares on pro rata basis. Excess application money was transferred to allotment.
All the money was duly received except from Sundar, holder of 100 shares, who failed to pay allotment and first call
money. His shares were later forfeited and reissued to Shyam at ₹60 per share ₹70 paid-up. Final call has not been
made. Pass necessary Journal entries in the books of XYZ Limited.
 VIDYA PEETAM
DIFFERENT CASES
WORKSHEET - 6
NAME: CLASS:
1. ABC Ltd. invited applications for issuing 5,00,000 Equity Shares of 10 each. The amount was payable as:
On Application: ₹30 per share;
On Allotment: ₹40 per share;
On First Call: ₹30 per share;
Applications were received for 6,50,000 shares and pro rata allotment was made as:
Applicants for 3,00,000 shares were allotted 3,00,000 shares.
Applicants for 3,50,000 shares were allotted 2,00,000 shares on pro rata basis,
Roshan, to whom 12,000 shares were allotted out of the group applying for 3,00,000 shares, failed to pay the
allotment money. His shares were forfeited immediately after allotment. Jackie, who had applied for 7000
shares out of the group applying for 3,50,000 shares failed to pay the first and final call. Out of the forfeited
shares, 1,00,000 shares were reissued @ ₹80 as fully paid-up. The reissued shares included all the forfeited
shares of Jackie. Pass necessary Journal entries to record the above transactions

2. ALtd. 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 reissued at 7 per share fully paid. Pass the necessary Journal entries in the books of A Ltd.

3. XYZ Ltd. invited applications for issuing 50,000 Equity Shares of 10 each. The amount was payable as:
On Application: ₹3 per share;
On Allotment: ₹4 per share;
On First Call: ₹3 per share;
Applications were received for 75,000 shares and pro rata allotment was made as:
Applicants for 40,000 shares were allotted 30,000 shares on pro rata basis.
Applicants for 35,000 shares were allotted 20,000 shares on pro rata basis,
Ramu, to whom 1,200 shares were allotted out of the group applying for 40,000 shares, failed to pay the
allotment money. His shares were forfeited immediately after allotment. Sharma, who had applied for 700
shares out of the group applying for 35,000 shares failed to pay the first and final call. Out of the forfeited shares,
1000 shares were reissued @ ₹8 as fully paid-up. The reissued shares included all the forfeited shares of Sharma.
Pass necessary Journal entries to record the above transactions
4. Konark Ltd. invited applications for issuing 3,00,000 shares of ₹10 each. The amount per share was payable as
follows:
₹3 on application,
₹3 on allotment, and
₹4 on first and final call.
The company received applications for 4,00,000 shares. Allotment was done as follows:
i. Applicants of 2,40,000 shares were allotted 2,00,000 shares
ii. Applicants of 1,20,000 shares were allotted 80,000 shares.
iii. Remaining applicants were allotted 20,000 shares.
Money overpaid on applications was adjusted towards sums due on allotment. Divij, a shareholder, belonging to
group (ii), who had applied for 6,000 shares, failed to pay allotment and call money, Faisal, another shareholder,
who was allotted 10,000 shares, paid the call money along with allotment. Faisal belonged to group (i). Divij's
shares were forfeited after the first and final call. Half of the forfeited shares were reissued @ ₹10 per share fully
paid up. Pass the necessary Journal entries to record the above transactions in the books of the company.

5. Max Ltd. invited applications for 2,00,000 Equity Shares of ₹10 each to be issued at 20% premium. The money
payable per share was:
On application - ₹5,
On allotment - ₹4 (including premium of ₹2),
On first call - ₹2
On final call - ₹1
Applications were received for 2,40,000 shares and allotment was made as:
(i) to applicants for 1,00,000 shares - in full,
(ii) to applicants for 80,000 shares - 75%
(iii) to applicants for 60,000 shares - 40,000 shares.
Applicants of 1,000 shares falling in Category (i) and applicants of 1,200 shares falling in Category (ii) failed to pay
allotment money. These shares were forfeited on failure to pay first call. Holders of 1,200 shares falling in
Category (iii) failed to pay the first and final call and these shares were forfeited after final call. 1,300 shares
(1,000 of Category (i) and 300 of Category (ii)) were reissued at 8 per share as fully paid-up. Journalise the above
transactions.

6. Eastern India Company Limited, having an authorised capital of ₹10,00,000 divided into shares of ₹10 each,
issued 50,000 shares at a premium of 3 per share payable as follows:
On application - ₹3 per share,
On allotment(including premium) - ₹5 per share,
On first call - ₹3 per share,
And the balance as and when required
Applications were received for 60,000 shares and the directors allotted the shares as follows:
(i) Applicants for 40,000 shares received in full.
(ii) Applicants for 15,000 shares received an allotment of 8,000 shares.
(iii) Applicants for 5,000 shares received 2,000 shares on allotment, excess money being returned.
All amounts due on allotment were received.
The first call was made and the money was received except for 100 shares.
Give Journal entries to record these transactions of the company.
 VIDYA PEETAM
COMPREHENSIVE ILLUSTRATIONS
WORKSHEET - 7
NAME: CLASS:
1. Green Ltd. was registered with an authorised capital of ₹2,00,000 in ₹10 per equity share, of these 6000 Equity
Shares issued as fully paid to the vendor for purchase of building, 8,000 Equity Shares were issued for
subscription and ₹ 5 per Equity Share were called-up, payable ₹2 on application, ₹1 on allotment, ₹1 on first call
and ₹1 on second call. The amounts received in respect of these shares were:
On 6,000 Equity Shares the full amount was received,
On 1,250 shares ₹4 per Equity Share,
On 500 shares ₹3 per Equity Share,
On 250 shares ₹2 per Equity Share.
The company forfeited 750 Equity Shares on which less than ₹4 per Equity Share had been paid. Pass Journal
entries in the books of the company.

2. Blue Ltd. was registered with an authorised capital of ₹5,00,000 in ₹50 per equity share. Of these, 3,000 Equity
Shares were issued as fully paid to the vendor for purchase of computer. 6,000 Equity Shares were issued for
subscription, and ₹30 per Equity Share was called-up, payable ₹10 on application, ₹10 on allotment, and ₹10 on
the first and final call. The amounts received in respect of these shares were:
On 4,000 Equity Shares, the full amount was received.
On 1,000 shares, ₹20 per Equity Share.
On 500 shares, ₹10 per Equity Share.
On 500 shares, ₹0 per Equity Share.
The company forfeited 1,000 Equity Shares on which less than ₹30 per Equity Share had been paid. Pass Journal
entries in the books of the company.

3. Rise Ltd. was registered with an authorised capital of 10,000 equity shares of ₹100 per equity share. Of these,
2,000 Equity Shares were issued as fully paid to the vendor for purchase of land. 5,000 Equity Shares were issued
for subscription, and ₹50 per Equity Share was called-up, payable ₹20 on application, ₹20 on allotment, and ₹10
on the first call. The amounts received in respect of these shares were:
On 3,500 Equity Shares, the full amount was received.
On 1,000 shares, ₹40 per Equity Share.
On 300 shares, ₹20 per Equity Share.
On 200 shares, ₹10 per Equity Share.
The company forfeited 1,500 Equity Shares on which less than ₹50 per Equity Share had been paid. Pass Journal
entries in the books of the company.

4. Ore Ltd. was registered with an authorised capital of ₹3,00,000 in ₹30 per equity share. Of these 5,000 Shares
were issued, and ₹15 per share was called-up, payable ₹5 - application, ₹5 - allotment, and ₹5 - first & final call.
The amounts received in respect of these shares were:
On 3,000 Equity Shares, the full amount was received.
On 1,500 shares, ₹10 per Equity Share.
On 500 shares, ₹5 per Equity Share.
The company forfeited 1,000 Equity Shares on which less than ₹15 per Equity Share had been paid. Pass Journal
entries in the books of the company.
5. Orange Ltd. was registered with an authorised capital of ₹7,50,000 in ₹75 per equity share. Of these, 5,000
Equity Shares were issued as fully paid to the vendor for purchase of patents. 6,000 Equity Shares were issued for
subscription, and ₹45 per Equity Share was called-up, payable ₹15 on application, ₹15 on allotment, and ₹15 on
first and final call. The amounts received in respect of these shares were:
On 4,500 Equity Shares, the full amount was received.
On 1,000 shares, ₹30 per Equity Share.
On 300 shares, ₹15 per Equity Share.
On 200 shares, ₹0 per Equity Share.
The company forfeited 1,500 Equity Shares on which less than ₹45 per Equity Share had been paid. Pass Journal
entries in the books of the company.

6. Purple Ltd. was registered with an authorised capital of ₹1,50,000 in ₹25 per equity share. Of these, 3,000 Equity
Shares were issued for subscription, and ₹10 per Equity Share was called-up, payable ₹5 on application, ₹3 on
allotment, and ₹2 on first and final call. The amounts received in respect of these shares were:
On 2,000 Equity Shares, the full amount was received.
On 700 shares, ₹8 per Equity Share.
On 200 shares, ₹5 per Equity Share.
On 100 shares, ₹3 per Equity Share.
The company forfeited 500 Equity Shares on which less than ₹10 per Equity Share had been paid. Pass Journal
entries in the books of the company.

7. Bronze Ltd. was registered with an authorised capital of ₹6,00,000 in ₹60 per equity share. Of these, 5,000 Equity
Shares were issued as fully paid to the vendor for purchase of a warehouse. 8,000 Equity Shares were issued for
subscription, and ₹36 per Equity Share was called-up, payable ₹12 on application, ₹12 on allotment, and ₹12 on
first and final call. The amounts received in respect of these shares were:
On 6,000 Equity Shares, the full amount was received.
On 1,200 shares, ₹24 per Equity Share.
On 600 shares, ₹12 per Equity Share.
On 200 shares, ₹6 per Equity Share.
The company forfeited 1,000 Equity Shares on which less than ₹36 per Equity Share had been paid. Pass Journal
entries in the books of the company.

8. Platinum Ltd. was registered with an authorised capital of ₹5,00,000 in ₹50 per equity share. Of these, 2,000
Equity Shares were issued as fully paid to the vendor for purchase of a patent. 6,000 Equity Shares were issued
for subscription, and ₹25 per Equity Share was called-up, payable ₹5 on application, ₹10 on allotment, ₹5 on first
call, and ₹5 on final call. The amounts received in respect of these shares were:
On 4,000 Equity Shares, the full amount was received.
On 1,200 shares, ₹20 per Equity Share.
On 400 shares, ₹15 per Equity Share.
On 300 shares, ₹10 per Equity Share.
On 100 shares, ₹5 per Equity Share.
The company forfeited 400 Equity Shares on which less than ₹15 per Equity Share had been paid. Pass journal
entries in the books of the company.