Issue of Shares at Premium. A stock split is a form of allotment in which the company allocates shares proportionately based on existing ownership, The number one reason a company issues new shares for allotment is ⦠Application for 1,00,000 shares were received. Journal entry-Forfeiture of Shares (After allotment and first call)- Issue at par. Applications were received for 260000 shares. Her shares were forfeited : Amount payable was as under : Rs 2 per share on application. The directors made both the calls and the all the amount were received except the final call on 600 shares which were subsequently forfeited. Usually, the companies that are financially strong, well- managed and have a good reputation in the market issue their shares at a premium. He already had excess application money of `7,500 to be adjusted in the allotment money. Gopal's shares were immediately forfeited after allotment . Applications for 3,000 shares were rejected and pro-rata allotment was made to the applicants for 10,000 shares. Applications for 3,000 shares were rejected and pro-rata allotment was made to the applicants for 10,000 shares. His shares were forfeited for the non-payment of calls. To Share Allotment A/c (excess) xxx To Share Call A/c (balance, if any) xxx (Being share application money on â¦..shares @ â¹â¦each, transferred to share capital and money on â¦..shares @ â¹â¦each, utilizes towards allotment and call) 3. 20 Full PDFs related to this paper. Applications were received for 18,000 shares. When issue price of a share is more than its face value, it is known as shares issued at a premium. PowerGrid InvIT IPO Allotment is on is 10 May 2021 but the allotment might come on 11 May 2021. 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. All money received due on allotment and call. Krishna's shares were forfeited immediately after the first call. Applications for 90,000 shares were received. A company issued 4,000 equity shares of â¹10 each at par payable as under : On application â¹3; on allotment â¹2; on first call â¹4 and on final call â¹1 per share. Question 2: Aircel Ltd issued 75,000 shares of Rs 20 each at par. According to Companies Act, Allotment of shares is a procedure of creating and issuing shares, either for new or existing shareholders. MODULE -5 Accounting for Shares and Debentures. Applications for 10,000 shares were rejected and allotment was made proportionately towards remaining applications and the excess application money is adjusted towards allotment money. It has received applications for 15000 shares. On application Rs.1 per share, on allotment Rs.2 per share, on first call Rs.3 per share and on second call Rs.4 per share. Amount of calls in arrear will be: (A) 3,800 (C) 1,800 (B) 2,800 (D) 6,200 In other words, the premium is the amount over and above the face value of a share. 8,000 share applications were refunded and were allotted to all the other applicants. Rs. Second instalment called Allotment money is called by the company at the time of Allotment of shares. (ix) Allotment strictly as per documents issued: The Board of Directors have to make the allotment of shares strictly as per the documents issued which include the prospectus and the application form. Applications closed on 30 April 20AA. Rs 3 per share on allotment. This paper. MODULE -5 Accounting for Shares and Debentures. As per guidelines of the Securities Exchange Board ⦠Sakshi holding 200 shares failed to pay allotment money and first call money. Agni Ltd issued 50,000 equity shares of Rs 20 each payable at Rs 10 on application, Rs 3 on allotment, Rs 5 on first call and the balance on final call. The Directors have not made final call of â¹ 2 per share. Allotment Application Call Issue of shares Payable in full on application from ACCOUNTING ACC3106 at The University of Queensland Over payments received on application was adjusted towards sums due on allotment. The Underwater Salvage Company Ltd, incorporated on 1 March 20AA, offered 100 000 shares to the public at a value of $1 each, payable 50 cents on application, 25 cents on allotment and 25 cents when called. All calls were made and were duly received except the allotment and final call on 1,600 shares allotted to Vijay. Applications were received for 60,000 shares of which 50,000 shares were allotted and the application money for the excess were refunded. Applications were received for 13,000 shares. The directors allotted 250000 shares and any excess application money received was returned to unsuccessful applicants. Shubham ltdinvited application for the allotment of 80000 equity shares of rs 10 eachat discount 10% The amount was payable as follows on application Rs 2 per share on allotment Rs 3 per share on first final call balance application for 100000 shares were received Application for - Accountancy - Accounting for Share Capital allotment of shares unless the amount of minimum subscription stated in the prospectus has been subscribed and the sum payable as application money for such shares has been paid to and received by the company. READ PAPER. MODULE -5 Accounting for Shares and Debentures. 73. Compared to share transfers, where no new money is received by the company, a share allotment can provide funds to expand or otherwise advance the business.. To initiate the process, the directors must get the existing shareholdersâ approval at a general meeting. A was allotted 300 shares . Applications for 10,000 shares were accepted in full and applicants for 20,000 share allotted half of the number of share applied and excess application money adjusted into allotment. Situation-A: Mr. X holds 5,000 shares of A Ltd of `10 each on which allotment money of `4 per share (including a premium of `1 per Share) and first and final call of `3 per Share is still due. Applications for 5,000 shares were rejected and pro- rata allotment was made to the remaining applicants. The remaining applicants were allotted 40,000 shares on pro-rata basis. 10 per share on allotment Balance on first and final call. Shareholders pay the instalment due on allotment of shares; Example. The issue price of a share is normally collected in stagesâalong-with application, on allotment and later by making one or two calls. After studying the prospectus, the public applies for shares of the company in the printed prescribed forms. Download. Rs 5 per share on call. rathee ltd invited applications for issuing 100000 equity shares of 10 each . A company issued 4,000 equity shares of â¹10 each at par payable as under : On application â¹3; on allotment â¹2; on first call â¹4 and on final call â¹1 per share. On application and allotment Rs 4 per share. The amount of shares is generally divided into a number of instalments. Amount payable on the application Rs 4 per share , on allotment Rs 12 per share , on first call Rs 2 per share and on second call Rs 2 Per share. K. Satyanarayana. 2. Calls were made up to the first call and all money was duly received with the exception of the allotment money on 150 shares and first call on 250 shares. Rs.5 on allotment and the balance on first and final call the company received applications for 15,000 shares and allotment was made pro rata P to whom 3000 shares were allotted failed to pay the amount due on allotment. the amount was payable as follows. Applications were received for 80,000 shares. A new share allotment is one of the main ways for a company to raise new finance. On application â¹ 1 per share, on allotment â¹ 2 per share, on first call â¹ 3 per share and on second and final call â¹ 4 per share. The amount received along with the applications is called application money. On Share Allotment due: Share Allotment A/c (amount due on allotment) Dr. xxx Issue of shares at their nominal value is called Issue at Par. 31 March:60c per share on application 30 April:60c per share on allotment 31 May:40c per share on ï¬rst call and a ï¬nal call:40c per share as and when required. Download PDF. Well as per New Companies Act, 2013 new provision has been implemented regarding the Share Application Money, pending for allotment. Company received applications for 80,000 equity shares and were allotted the shares. Q. All sums payable on application, allotment and calls were duly received with the following exceptions: (i) A, who held 200 shares, failed to pay the money on allotments ⦠The issue of shares at premium refers to the issue of shares at a price higher than the face value of the share. the shares were issued at a premium of 60% . 73. 73. Krishna, a holder of 100 shares , failed to pay the first call money and Girdhar, a holder of 300 shares, paid the second call money also along with the first call . All sums payable on application, allotment and calls were duly received with the following exceptions: A, who held 200 shares, failed to pay the money on allotment and calls. If issue price of a share is less than its face value, it is called as shares issued at a discount. 63. The allotment of security shall be made with in 60 days of receiving share application money.if not then refund the share application money within 15 days of completion of 60 days .Also, if the shares are not allotted within 60 days, the share application is classified as deposits. As per the subscription numbers, the basis of allotment PowerGrid InvIT IPO is 5:1 as the IPO subscribed 4.83 times in NII as retail subscribed in the NII quota (due to no retail quota). Full allotment was made to the applicants of 14,000 shares. applications for 190000 shares received . Company has decided to allot shares on pro- rata basis. A short summary of this paper. Company received application money â¹ 3 per share, allotment money â¹ 4 per share (Including premium), and first call money â¹ 3 per share. A company issued 4,000 equity shares of â¹10 each at par payable as under : On application â¹3; on allotment â¹2; on first call â¹4 and on final call â¹1 per share. On first call Rs 3 per share. Applications were received for 13,000 shares. Following amounts were payable on issue of shares by a Company : 3 on application, 3 on allotment 2 on first call and 2 on final call. X Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium). The provisions made in the Memorandum of Association and the Articles of Association must also be given due consideration. Issue of shares Deposit on application instalment on allotment balance on call from ACC 601 at Fiji National University Mr. Nadeem fail to pay the allotment money for 200 shares issued to him; so these shares were forfeited when he will fail to pay the 1 st and 2 nd call money. applications and allotment - 6 including premium 4; on first and final call :balance including premium. Download Full PDF Package. 50 per share on application Rs. All the shares were fully subscribed and paid except of a shareholder having 250 shares who could not pay for the final call. Afterwards, the first call was made. Applications were received for 13,000 shares. On second and final call balance. X holding 500 shares paid only application and allotment money whereas Y holding 400 shares did not pay final call. Applications for 3,000 shares were rejected and pro-rata allotment was made to the applicants for 10,000 shares.
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