Issue of Shares
Commerce ⇒ Accountancy
Issue of Shares starts at 12 and continues till grade 12.
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A company issued 20,000 shares of ₹10 each at a premium of ₹2 per share. The entire amount was payable on application. All shares were subscribed and money received. Pass the journal entry for receipt of application money.
Define 'share application money'.
Explain the difference between 'calls in arrears' and 'calls in advance'.
Explain the process of refunding excess application money in case of over-subscription.
A company issued 10,000 shares of ₹10 each at a premium of ₹2 per share. The issue price is payable as follows: ₹3 on application, ₹5 (including premium) on allotment, and ₹4 on first and final call. Calculate the amount received on allotment.
A company issued 12,000 shares of ₹10 each at par. Application money ₹2, allotment ₹3, first call ₹2, and final call ₹3. If a shareholder holding 500 shares fails to pay the final call, what is the amount of calls in arrears?
A company issued 15,000 shares of ₹10 each at a premium of ₹2 per share. The issue was fully subscribed. If the company received only ₹1,50,000 on application, what was the application money per share?
A company issued 20,000 shares of ₹10 each at a premium of ₹2 per share. The entire amount was payable on application. All shares were subscribed and money received. Pass the journal entry for receipt of application money.
What is the minimum subscription as per SEBI guidelines for a public issue of shares? (1) 90% (2) 75% (3) 50% (4) 100%
Which account is credited when share application money is received? (1) Share Application Account (2) Share Capital Account (3) Bank Account (4) Share Allotment Account
Which of the following is credited when shares are issued at a premium? (1) Share Capital Account (2) Securities Premium Account (3) Share Forfeiture Account (4) Capital Reserve Account
Which of the following is NOT a method of issuing shares? (1) Public Issue (2) Private Placement (3) Rights Issue (4) Bank Loan
Fill in the blank: The ______ account is credited when shares are reissued at a discount.
Fill in the blank: The ______ account is debited when shares are forfeited.
Fill in the blank: The amount called by the company after allotment of shares is known as ______ money.
Fill in the blank: The amount not received on shares is called ______ money.
True or False: A company can issue shares at a discount as per the Companies Act, 2013.
True or False: Securities Premium Reserve can be used to write off preliminary expenses.
True or False: Shares can be issued at a discount to the face value as per Companies Act, 2013.
True or False: Shares can be issued for consideration other than cash.
