Share Capital Problems and Solutions
Share Capital Problems and Solutions is a set of five solved problems.
Problems 1: Oversubscription of Shares
Ali Mohammad Khan Ltd. issued 100,000 equity shares of Rs. 10 each to the public at par. The details of amount payable on the shares are as follows.
Application monies were received on 120,000 shares. Excess monies were refunded immediately. All other amount on allotment and final call received. Pass Journal entries; prepare Bank Account and Balance Sheet.
Problems 2: Share Premium
The Authorized capital of a company is 200,000 shares of worth Rs. 10 each. On March 2018, 50,000 shares are issued for subscription at a Premium of Rs. 2 per share. The share money payable as follow: Rs. 5(including the premium of Rs. 2) with Application, Rs. 3 on Allotment, Rs. 2 on First Call and Rs. 2 on Final Call. Pass Journal entries; prepare Bank Account and Balance Sheet for Star Ltd.
Problems 3: Under Subscription and Share Discount
Newcornor Ltd. issued 10,000 shares of Rs. 10 each at a discount of 10% payable as: on Application Rs. 2; on Allotment Rs. 4; and on Final Call Rs. 3. At the end of this transaction 8,000 shares are subscribed and money was duly received. Pass Journal entries; prepare Bank Account and Balance Sheet for year ended 31st December 2017.
Problems 4: Arrears Money
Fine Book Ltd. has Authorized Capital 1 million share of worth Rs. 10 each. Company issued 100,000 equity shares of Rs. 10 each at Rs.2 Discount per shares. The amount payable as: Rs. 2 on Application; Rs. 3 on Allotment; and Rs.3 on Call. All monies due were received except the allotment monies for 2,000 shares. Show the Journal entries; Bank Account and Balance Sheet as on March 31st, 2018.
Problems 5: Practice of P1 to P4
Dynamic Ltd. has Authorized Capital 100,000 share of worth Rs. 10 each. Company issued 10,000 equity shares of Rs. 10 each at Rs.2 Premium per shares. The amount payable as Rs. 2 on Application; Rs. 5 in Allotment (including Premium); and rest on First and Final Call. Applications were received for 15,000 Shares. Excess Application money was refunded to applicants. All monies due were received except the First and Final Call monies for 1,000 shares. Show the Journal entries; Bank account and Balance Sheet as on March 31st, 2018.