practical questions on issue of shares

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Sunena, a shareholder holding 500 shares of Rs. 10 each, did not pay the allotment money of Rs. 4 per share (including a premium of Rs. 2) and the first and final call of Rs. 3. Her shares were forfeited after the first and final call. Give journal entry for forefeiture of the shares.

High Light India Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 20 per share payable as follows: On Application Rs. 40 (including Rs.10 premium) On Allotment Rs. 30 (including Rs.10 premium) On First Call Rs. 30 On Second and Final Call Rs. 20 Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 share. Excess application money was utilised towards allotment. Rohan to whom 600 shares were allotted failed to pay the allotment money and his shares were forfeited immediately after allotment. Aman who applied for 1,050 shares failed to pay first call and his share were forfeited immediatelyafter first Call. Second and final call was made. All the money due on second call have been received. Of the shares forfeited, 1,000 share were reissued as fully paid-up for Rs. 80 per share, which included the whole of Aman’s shares. Record necessary journal entries in the books of High Light India Ltd.

(a) If a Share of Rs. 10 on which Rs. 8 is called-up and Rs. 6 is paid as forfeited. State with what amount the Share Capital account will be debited. 

Rupak Ltd. issued 10,000 shares of Rs.100 each payable Rs.20 per share on application, Rs.30 per share on allotment and balance in two calls of Rs.25 per share. The application and allotment money were duly received. On first call, all members paid their dues except one member holding 200 shares, while another member holding 500 shares paid for the balance due in full. Final call was not made. Give journal entries and prepare cash book

 Kishna Ltd. issued 15,000 shares of Rs.100 each at a premium of Rs.10 per share, payable as follows: On application Rs.30 On allotment Rs.50 [including premium] On first and final call Rs.30 All the shares subscribed and the company received all the money due, with the exception of the allotment and call money on 150 shares. These shares were forfeited and reissued to Neha as fully paid share at an issue price of Rs.12 each. Give journal entries in the books of the company.

State which of the following statements are true : (a) A company is an artificial person. (b) Shareholders of a company are liable for the acts of the company. (c) Every member of a company is entitled to take part in its management. (d) Company’s shares are generally transferable. (e) Share application account is a personal account. (f) The director of a company must be a shareholder. (g) Paid up capital can exceed called up capital. (h) Capital reserves are created from capital profits. (i) At the time of issue of shares, the maximum rate of securities premium is 10%. (j) The part of capital which is called up only on winding up is called reserve capital.

Jindal and Company purchased a machine from High Life Machine Limited for Rs.3,80,000. As per purchase agreement, Rs. 20,000 were paid in cash and balance by issue of shares of Rs.100 each. What will be the entries passed if the shares are issued : (a) at par (b) at 20% premium