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Maximum limit of Premium on shares is :...

Maximum limit of Premium on shares is :

A

`5 %`

B

`10 %`

C

No Limit

D

`100 %`

Text Solution

Verified by Experts

The correct Answer is:
C
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(Forfeiture of Shares issued at Premium and Reissued at Discount). A Ltd. forfeited 600 Equity Shares of Rs. 10 each issued at a premium of 20% to Ram who had applied for 720 Equity Shares, for non-payment of allotment money of Rs. 5 per equity share (including premium) and the first and final call of Rs. 5 per equity share. Out of these, 200 Equity Shares were reissued to Shyam credited as fully paid for Rs. 9 per equity share. As per the terms of issue, company was to retain the excess application money to adjust against calls. Pass Journal entries to record forfeiture and reissue of shares.

What is the investment to purchase 80 shares of FV Rs 10 at a premium of Rs 5 how many shares can be purchased for Rs 300 ?

Asim invested Rupees 13,750 to buy shares of FV Rupees 100 at a premium of Rupees 25. How many shares did he buy ?

Smt Deshpande purchased shares of FV Rs 5 at a premium of Rs 20 How many shares will she get for Rs 20000 ?

A limited company offered for subscription 10,000 Equity Shares of Rs 10 each at a premium of Rs 2 per share and 5,000, 10% Preference Shares of Rs 10 each at par. The amount on equity shares was payable as thus : {:("On Application","Rs 3 per share"),("On Allotment","Rs 5 per share ( including a premium)"),("On Fist Call","Rs 4 per share"):} The amount of preference shares was payable as follows : {:("On Application","Rs 3 per share"),("On Allotment","Rs 4 per share"),("On Fist Call","Rs 3 per share"):} All the shares were fully subscribed, called-up and paid. Record these transactions in the journal and cash book of the company.

A limited company forfeited 400 shares of Mr. X, who had applied for 600 shares on account of non-payment of allotment money Rs. 3 + Rs. 2.50 (premium) and first call Rs. 2. Only Rs. 4 per share was received with application. Out of these, 200 shares were re-issued to Mr. Y at Rs. 8 per share, Rs. 9 paid -up. Give journal entries relating to forfeiture and re-issue.

DK GOEL-COMPANY ACCOUNTS - ISSUE OF SHARES -MULTIPLE CHOICE QUESTIONS
  1. Which of the following is not under the heading 'Share Capital' in a B...

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  2. Share Application Account is in the nature of :

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  3. Maximum limit of Premium on shares is :

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  4. Amount of Calls inAdvance is

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  5. Following amount were payable on issue of shares by a Company : Rs. 3 ...

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  6. The subscribed capital of a company is Rs. 80,00,000 and the nominal v...

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  7. A shareholder holding 600 shares paid the amount of call @ Rs. 5 per s...

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  8. E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares o...

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  9. A company issued 4,000 equity shares of Rs. 10 each at par payable as ...

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  10. A company issued 4,000 equity shares of Rs. 10 each at par payable as ...

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  11. Which one of the following items is not a part of subscribed capital ?

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  12. Y Ltd. forfeited 400 shares of Rs. 10 each, Rs. 7 called up, for non-...

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  13. 400 shares of Rs. 10, on which Rs. 8 has been called and Rs. 5 has bee...

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  14. R Ltd. forfeited 600 shares of Rs. 100 each Rs. 70 called up on which ...

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  15. Madhu Ltd. forfeited 800 shares of Rs. 10 each issued at 10% premium t...

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  16. B Ltd. forfrited 300 shares of Rs. 100 each, Rs. 70 called up, for non...

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  17. 2,000 shares of Rs. 10, on which Rs. 7 has been called and Rs. 5 been ...

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  18. X Ltd. forfeited 400 shares of Rs. 20 each Rs. 15 called up on which a...

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  19. Z Ltd. forfeited 300 shares of Rs. 10 each issued at 20% premium (Rs. ...

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  20. What is the net balance left in Share Forfeiture Account :

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