1. What is the meaning of minimum subscription?
2. What is authorized capital?
3. What is sweat equity shares?
4. What is private placement of shares?
5. How is share capital shown in companies’ Balance sheet?
6. Distinguish between reserve capital and capital reserve.
7 . State any three conditions on which shares can be issued at discount.
8. State the purpose for which share premium can be utilized? 9. Rohit Ltd.
purchased asset from Rohan &co. worth Rs 400000 at 10%trade discount .A sum of
Rs 90000 was paid by means of the draft and for the balance due to Rohit Ltd.
Issued equity share of Rs 10 each at a discount of 10%.Journlise the above
transaction in the book of the company.
10. R Ltd. foreited 200 equity shares of Rs.10 each issued at a premium of Rs. 5 per
share payable along with allotment, for the non-payment of allotment money of Rs.8
per share (including premium).Application was Rs.2 per share .The forfeited shares
were reissued for Rs.2,000 as fully paid. Pass necessary journal entries.
11. X Ltd. invited applications for the issue of Rs 1000000 equity share of Rs10 each
payable as follows
On application and allotment Rs 3 per share
On first call Rs 4 per share
On second and final call Rs 3 per share
Applications for 1500000 shares were received and pro -rata allotment was made to the applications. Excess application money was adjusted on the sums due on first call.
When the first call was made, one shareholder who had applied for 15000 shares did not pay the first call money. Pass necessary journal entries in the books of the company.
12.
Moneywell company issued for public subscription 50000 equity shares of the value of
Rs.10 each at the discount of 10% payable as follows.Rs.2 on application, Rs.3 on allotment , Rs.
2 on first call, Rs . 2 on final call.The company received application for 1,25,000 shares . The allotment was done as follows.

a.
Applicants of 15,000 shares were refunded the application money. b.
Applicants of 60,000 shares were allotted 30,000 shares c.
Remaining applicants were allotted 20,000 shares
The exess application money to be adjusted allotment and call if any.
Mohan , A share holder who had applied for 3000 shares (Group B) failed to pay the allotment money and both calls.Remesh a holder(Group C) who was allotted 1500 paid the calls money along with allotment money. Pass journal entry to record the above.
14 Jounalise the following transaction in the books of Poonam ltd
100 shares of Rs.100 each issued at a discount of 10% were forfeited for the non payment of allotment money of Rs.50 per share. The first and final call on the shares at Rs.20 per share was not need. The forfeited shares were re-issued for Rs. 7000 fully paid.
15 50 shares of Rs. 10 each issued at a premium of Rs.5 each.p ayable with allotment were forfeited for the nonpayment of allotment money of Rs.9 per shares including the premium.
The first and final call on these shares at Rs 3 per share were not made. The forfeited share were reissue d at Rs.12 per share fully paid up.
16. 1000 shares of Rs. 10 each issue the par were forfeited for the non payment of the final call of Rs.2 per shares. These shares were re-issued at the rate of Rs.8 per share fully paid up?
17 Distinguish between Equity share and Preference share?
18 . Seema Ltd.invited applications for issuing 2, 00,000 equity shares of Rs.10 each at
a premium of Rs.3 per share.
The amount was payable as follows:
On Application Rs.5 per share (including premium)
On Allotment Rs.4 per share
On 1 st and final call –the balance
Applications for 2, 60,000 shares were received. Applications for 20,000 shares were rejected.
To the remaining applicants, shares were allotted on pro-rata basis .Excess money received on application was adjusted with sums due on allotments. All calls were made and were duly received except the first and final call of Mr.Sudhir who applied for 2,400 shares. His shares were forfeited. The forfeited shares were re-issued for Rs.28, 800 fully paid-up.Pass necessary journal entries for the above transactions in the books of the company

19 What is meant by convertible debentures?
20`Why would an investor prefer to invest in debentures of a company rather than in its shares?
21 What is meant by secured debenture
22 Ltd. for the above mentioned A company issued Rs.10000,13% debentures at a discount
of 5 % redeemable after 5 years at a premium of 10%.Pass journal entries for the
issue of debentures.
23. Shruti Ltd.bought the business of Shinkey Ltd. on 1-4-2007 consisting of Sundry
Assets of Rs.560000 and creditors Rs.100000 for a purchase consideration of
Rs.500000.Rs.100000 was paid in cash on 3-4-2007 and for the balance 6% Debentures
were issued at a premium of 25% on 5-4-2007. Pass necessary journal entries in the
books of Shrutitransactions.
24 . Gopalan Ltd. purchased 5000 of its own 8% Debentures of Rs.1000 each at Rs.987 per
Debenture.It also purchased another lot of 600 debentures of the same series at Rs.986
per debenture. The debentures were purchased for the purpose of cancellation . Record
necessary journal entries in the books of the company.
25 SaheshLtd. issued 10000,9%Debentures of Rs.100 each at par and also raised a
loanof Rs.200000 from bank, collaterally secured by Rs.250000,9%Debentures.How will
you show the Debentures in BalanceSheet of the Company assuming that the
company has recorded the issue of Debentures as collateral in the books?