COMPANY ACCOUNTS
SAMPLE PAPER
2
1.What do you mean by Debenture Trust Deed? Write any two Provisions
For offering the debentures.
2.Distinguish between Shares and Debentures.
3.State clearly the conditions under which a company can issue shares at a
discount.
4 How share is different from sweat equity?
5. Explain the concept of debenture.
6. Explain under-subscription under section 69 of company act 1956.
7. What do you mean by issue of Debentures as collateral security
8. State clearly the conditions under which a company can issue shares at a discount.
9 Rs. 15,00,000 debentures issued as collateral security in the favour of bank for
loans advanced by it, by a limited company. How will you record in the books of a
company?
10. X Ltd. invited application for 10,000 12% debentures of Rs.100 each. Application for
15,000 debentures were received. What are the alternatives available to the company
for the allotment of these debentures?
11.M Ltd purchased a machine from A Ltd for Rs 5,40,000. It was decided to make the
payment by issue of equity shares of Rs 10 each at a discount of 10% .
Give necessary journal entries in the books of M Ltd)
12.Khalid Ltd forfeited 200 share of Rs100 each issued at a discount of 5% on
Which Rs.50 per share has been called and Rs.6000 has beenpaid .The company then
Re-issued the above share to barun upon payment of Rs.18000, credited as fully paid.
Pass journal entries for forfeiture and re-issue of the SHARE
13 Carbon Ltd. Company was established with authorized capital of Rs.10,00,000
Divided into shares of Rs.10 each . Out of these 10,000 shares were issued as fully
paid being the payment of Machinery purchased , 32,000 shareswere issued and
subscribed for by the public payable as Rs.4 on application ; Rs.2 on allotment; Rs.2
on first call and Rs.2 on final call .
The amount received in respect of these shares were as follows;
On 24,000 shares full amount
On 5,000 shares Rs.8 per share
On 2,000 shares Rs.6 per share
On 1,000 shares Rs.4 per share
The Directors forfeited 3,000 shares on which less than Rs.8 per share
Has been received and re-issued to Kamal at Rs.8 per share as fully paid .
Pass journal entries in the books of the Company .
14
Rs. 10,00,000 debentures issued as collateral security in the favour of bank for
loans advanced by it, by a limited company. How will you record in the books
of a company?
15. Pass necessary journal entry
i) Issued 1000, 12% Debenture of Rs.100 each at 6% discount repayable at 6%
Premium.
ii) Convert 100, 12% Debenture of Rs.100 each issued at 10% discount into equity
Share of Rs.10 each.
16. S. India Ltd. issued for public subscription 40,000 equity shares of Rs.10 each at a
premium of Rs.2 per share payable as under:
On application
Rs.2 per share
On allotment
Rs.5 per share (including premium)
On first call
Rs.2 per share
On second call
Rs.3 per share
Applications were received for 60,000 shares. Allotment was made pro-rata to
the applicants for 48000 shares, the remaining application being refused. Money
overpaid on application was applied towards sum due on allotment. A to whom 1,600
shares were allotted failed to pay the allotment and call money to whom 2000 shares
were allotted failed to pay the two calls. The shares of A and B were subsequently
forfeited after the second call was made. 3000 of the
forfeited shares were reissued
at Rs.7 per share fully paid. The reissued shares included all shares of B. Pass journal
entries in the books of S. India Ltd. to record the above transactions.
17 Vibha ltd. invited application for 10,000,12% preference shares of Rs. 100 each .
The shares were issued at a discount of 10%. The amount was payable as follow:
On application
Rs. 20
On allotment
Rs. 30
On first & final call
balance
Application for 15,000 shares were received. Application for 3,000shares were
rejected & the balance of applicants were allotted on prorata basis. All calls were
made & were duly received except the final call on 100 shares. These shares were
forfeited. The forfeited shares were reissued at Rs. 120 per share fully paid up.
Pass the journal entries in the books of Vibha Ltd.
18. Explain the term ‘forfeiture of shares’ and give the accounting treatment on
forfeiture
19 . X Ltd. invited application for 10,000 12% debentures of Rs.100 each. Application
for 15,000 debentures were received. What are the alternatives available to the
company for the allotment of these debentures?
20 . What is meant by Minimum subscription?