NCERT Solutions for Class 12 Accountancy II Chapter 1 Accounting For Share Capital

Q.1: A company issued 20,000 equity shares of Rs.10 each payable Rs.3 on
application, Rs.3 on allotment, Rs.2 on first call and Rs.2 on second and the
final call. The allotment money was payable on or before May 01, 2015; first
call money on or before August Ist, 2015; and the second and final call on or
before October Ist, 2015; ‘X’, whom 1,000 shares were allotted, did not pay the
allotment and call money; ‘Y’, an allottee of 600 shares, did not pay the two
calls; and ‘Z’, whom 400 shares were allotted, did not pay the final call. Pass
journal entries and prepare the balance sheet of the company.

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Q.2: Alfa Company Ltd. issued 10,000 shares of Rs.10 each for cash payable Rs.3 on application, Rs.2 on allotment and the balance in two equal instalments. The allotment money was payable on or before March 31, 2015; the first call money on or before 30 June, 2015; and the final call money on or before August, 31. 2015. Mr. ‘A’, to whom 600 shares were allotted, paid the entire remaining face value of shares allotted to him on allotment. Record journal entries in company’s books and also exhibit the share capital in the balance sheet on the date.

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Q.3: Excel Company Limited made an issue of 1,00,000 Equity Shares of Rs.10 each, payable as follows :

X, the holder of 400 shares did not pay the call money and his shares were forfeited. 200 of the forfeited shares were reissued as fully paid at Rs.8 per share. Draft necessary journal entries and prepare Share Capital and Share Forfeiture accounts in the books of the company.

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Q.4: A holds 100 shares of Rs.10 each on which he has paid Re.1 per share on application. B holds 200 shares of Rs.10 each on which he has paid Re.1 on application Rs.2 on allotment. C holds 300 shares of Rs.10 each who has paid Re.1 on applications, Rs.2 on allotment and Rs.3 on first call. They all failed to pay their arrears and second call of Rs.4 per share as well. All the shares of A, B and C were forfeited and subsequently reissued at Rs.11 per share as fully Paid-up.

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Q.5: What is public company?

Ans : It is a company which (i) is not a private company, (ii) has a minimum paid-up capital of Rs. or such higher amount as may be prescribed The minimum number of members required to form a public limited company is seven. There is no restriction on maximum number of members.