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If the value of a company stock drops fr...

If the value of a company stock drops from Rs. 25 per share to Rs. 21 per share, the percent age decrease per share is:

A

4

B

8

C

12

D

16

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The correct Answer is:
To find the percentage decrease in the value of the company stock, we can follow these steps: ### Step 1: Determine the original price and the new price. - Original price of the stock = Rs. 25 - New price of the stock = Rs. 21 ### Step 2: Calculate the decrease in price. - Decrease in price = Original price - New price - Decrease in price = Rs. 25 - Rs. 21 = Rs. 4 ### Step 3: Use the formula for percentage decrease. The formula for percentage decrease is given by: \[ \text{Percentage Decrease} = \left( \frac{\text{Decrease in Price}}{\text{Original Price}} \right) \times 100 \] ### Step 4: Substitute the values into the formula. - Decrease in price = Rs. 4 - Original price = Rs. 25 Substituting the values, we get: \[ \text{Percentage Decrease} = \left( \frac{4}{25} \right) \times 100 \] ### Step 5: Calculate the percentage decrease. - First, calculate \( \frac{4}{25} \): \[ \frac{4}{25} = 0.16 \] - Now, multiply by 100: \[ 0.16 \times 100 = 16 \] ### Final Answer: The percentage decrease per share is **16%**. ---
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A holds 100 shares of Rs. 10 each, on which he has paid only Rs. 2.50 per share as application money. B, who holds 200 shares of Rs. 10 each, has paid Rs. 2.50 and Rs. 2 per share as application and allotment money, respectively. C holds 300 shares of Rs. 10 each and has paid Rs. 2.50 per share on application, Rs. 2 per share on allotment and Rs. 3 per share on first call. They failed to pay their arrears and the final call. Therefore the Directors forfeited their shares. These shares were subsequrntly reissued for cash at a discount of 10 per cent. Record journal entries in the books of the company to give effect to the above.

X Ltd., invited applications for 20,000 shares of Rs. 10 each payable as under : Rs. 3 per share on application, Rs. 3 per share on Allotment, Rs. 2 per share on First Call, and Rs. 2 per share on Final Call. Final Call was not made by the company. An applicant who had been allotted 100 shares failed to pay Allotment and First Call money due from him. His shares were forfeited after the First Call and were immediately re-issued at Rs. 8.50 per share. Make necessary entries in the Journal of the company.

Pass journal entries for the forfeiture and re-issue in the following cases : (i) A Ltd. forfeited 400 shares of Anil of Rs. 10 each fully called up for non-payment of final call of Rs. 2 per share and re-issued to Sunil as fully paid for Rs. 10 share. (ii) B Ltd. forfeited 500 shares of Rs. 10 each fully called up for non-payment of first call of Rs. 2 per share and final call of Rs. 2 per share. All of these shares were re-issued as fully paid for Rs. 8 per share. (iii) C Ltd. forfeited 600 shares of Rs. 10 each fully called up for non-payment of allotment money of Rs. 3 per share, first call of Rs. 2 per share and final call of Rs. 2 per share. 400 of these shares were re-issued as fullly paid up at the maximum rate of discount allowed by law. (iv) D Ltd. forfeited 800 shares of Rs. 10 each fully called up, on which the holder has paid only the application money of Rs. 3 per share. Out of these, 500 shares were re-issued at Rs. 11 per share, fully paid up.

A, who holds 200 shares of Rs. 100 each, has paid only Rs. 25 per share as application money. B, who holds 300 shares of Rs. 100 each, has paid Rs. 25 per share on application and Rs. 30 per share on allotment. C, who holds 400 shares of Rs. 100 each, has paid Rs. 25 per share on application, Rs. 30 per share on allotment and Rs. 20 per share on first call. They failed to pay their arrears and the final call. Their shares were forfeited and re-issued at Rs. 95 per share. Prepare necessary journal entries.

The Director of a company foreited 300 shares of Rs. 10 each issued at a premium of Rs. 3 per share, for the non-payment of the first call money of Rs. 2 per share. The final call of Rs. 2 per share has not been made. Half the forfeited shares were reissued at Rs. 1,500 as fully paid-up. Record the Journal entries for the forfeiture and reissue of shares.

(Forfeiture of Shares Issued at Premium, Reissued at Discount). ABC Ltd. forfeited 150 Equity Shares of Rs. 10 each issued at a premium of Rs. 5 per share, for non-payment of allotment money of Rs. 8 per share (including premium of Rs. 5 per share), the first call of Rs. 2 per share and the final call of Rs. 3 per share. Out of these, 100 Equity Shares were reissued at Rs. 14 per share. Give Journal entries the forfeiture and reissue of shares.

Raja Ltd., forfeited 400 shares of Rs. 25 each (Rs. 20 called up) held by Asha, for non-payament of allotment money of Rs. 10 per share (including Rs. 5 per share premium) and the first call of Rs. 6 per share. Out of these, 300 shares were reissued to X as Rs. 20 called up for Rs. 16 per share. Give journal entries for forfeiture and reissue of shares.

A limited Company was registered with an authorised capital of Rs. 2,00,000 in Rs. 10 shares, of these 6,000 shares were issued as fully paid to the vendors for the purchase of buildings. 8,000 shares were subscribed for by the public and during the first year Rs. 6 per share were called up, payable Rs. 3 on application, Rs. 1 on allotment, Rs. 1 on first call, and Rs. 1 on second call. The amounts received in received in respect of these shares were as follows : On 6,000 shares the full amount called. On 1,200 shares Rs. 5 per share. On 500 shares Rs. 4 per share. On 300 shares Rs. 3 per share. The directors forfeited 800 shares on which less than Rs. 5 per share had been paid. Show journal entries in the books of the company and also show the Share Capital, as it would appear in the Balance Sheet.

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