21 Important Questions and Practical Problems on Company Account Share Capital

21 Important Questions and Practical Problems on Company Account Share Capital are as follows.

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1. What is company? Give the main characterizes of a company. Distinguish it from partnership.
2. What are the different types of companies? Give the procedure of forming a company.
3. Write notes on (i) Minimum subscription (ii) Certificate of commencement of business.
4. Define prospectus. What are the main contents of a prospectus?
5. Enumerate the statutory books which are maintained by a company.
6. Give the main provisions of Companies Act regarding books of accounts to be maintained by a company.
7. Give the main divisions of share capital of a company.
8. What is a share? Discuss the types of shares which a company can issue. Distinguish between equity and preference shares.
9. Write short notes on (i) Authorized Capital (ii) Minimum Subscription (iii) Calls in Arrears (iv) Reserve Capital.
10. What do you understand by issue of shares at par, at a premium and at a discount?
11. Distinguish between (i) calls in advance and class in arrears (ii) forfeiture of shares and surrender of shares.
12. Why allotment of shares is necessary? Give a specimen of Applications and Allotment Book.
13. Give the journal entries for issue of shares from application money to final call.
14. What do you understand by over-subscription of shares? How excess application money is treated in accounts?
15. What is the difference between calls in arrears and calls in advance? Are there any provisions for interest on such arrears or calls in advance?
16. In what circumstances can a company forfeit shares? Can forfeited shares be reissued at discount? If so, what extent?
17. When can the shares be forfeited? Can forfeited shares be issued at discount? If so, to what extent? Where would you transfer the balance left in the forfeited shares account after such shares have been reissued?
18. X, Y, Ltd. was registered with an authorized capital of 2.00,000 shares of Rs. 10 each. 1, 40,000 shares were issued to the public. The public subscribed for 1, 00,000 shares. The company called up Rs. 7 per share all the money called up was duly received. Show the amounts of various types of share capital.
19. A company was formed with a capital of Rs. 15, 00,000 in shares of Rs. 10 each. It offered to the public 1,00,000 shares payable Re. 1 per share on applications, Rs. 2 per share on allotment and, Rs. 3 per share on first call, The balance of Rs. 4 per share to be called only in case of necessity. Applications were received for 90, 00 shares and the shares were accordingly allotted. All the money was duly received with the exception of allotment money on 200 shares and first call on 500 shares. Journalize the transactions and prepare the Balance Sheet.
20. The Hindustan Manufacturing Limited had a total subscribed capital of Rs. 10,00,000 in equity shares of Rs. 10 each of which Rs. 7.50 were called up. A final call of Rs. 2.50 was made and all amounts paid except the two calls of Rs. 2.50 each in respect of 100 shares held by Mr. Y. These shares were forfeited and re-issued at Rs. 8 per share. Make the journal entries) including that of cash) necessary to record transactions of final call, forfeiture of shares and reissue of forfeited shares.
21. On 1^st April the directors of ABC Ltd. Issued 1,00,000 equity shares of Rs. 10 each at Rs. 12 per share payable as to Rs. 5 on application, Rs 4 on allotment and the balance on 1^st July. The lists closed on 12^th April, by which date applications for 1, 40,000 shares had been received. Of the cash received. Rs. 80,000 was returned and Rs. 1, 20,000 was applied to the amount due on allotment the balance of which was paid on 19^th April. All shareholders paid the call due on 1^st July, with the exception of one allotted for 1,000 shares. These shares were forfeited on 30^th November and reissued as fully paid at Rs. 8 per share on 2^nd January. Pass journal entries in the books of the company recording the above transactions.