Company Accounts

Share Capital

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R Ltd purchased a building from X Infra for Rs 6,00,000 and the payment is to be made by the issue of shares for Rs 100 each at a premium of 20%. Calculate the number of shares to be issued.

5000 shares

6000 shares

10000 shares

600000 shares

✅ Correct Option: 1

The building is purchased for Rs 6,00,000, and the payment will be made through issuing shares.

Finding the Issue Price per Share:

Face Value of each share = Rs 100

Premium = 20% of Rs 100 = Rs 20

Issue Price per share = Face Value + Premium

Issue Price = Rs 100 + Rs 20 = Rs 120

Calculating Number of Shares:

Using the formula: Number of Shares = $\frac{\text{Total Consideration}}{\text{Issue Price per Share}}$

Number of Shares = $\frac{6,00,000}{120}$ = 5,000 shares

When shares are issued at a premium, the company receives the full issue price (face value + premium) for each share. Since the total payment required is Rs 6,00,000 and each share brings in Rs 120, dividing gives us 5,000 shares.

Correct Option: 1 (5000 shares)

2026: 13 May Shift 1

Purna Ltd. forfeited 16,000 equity shares of Rs. 200 each issued at a premium of 10% for non-payment of first and final call of Rs. 60 per share. The minimum amount at which all forfeited shares can be reissued will be :-

2026: 11 May Shift 2

Antra Ltd. invited applications for 30,000 Shares of Rs. 100 each at a premium of Rs. 30 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. 30 (including Rs.10 premium). Applications were received for 35,000 shares and a pro rata allotment was made. Excess application money was utilized towards the sum due on allotment. Vijaya to whom 60 shares were allotted, failed to pay the allotment money and his shares were forfeited immediately after allotment.

Allotment money not received on Vijaya's shares will be:

2025: 13 May Shift 1

Which of the following statements are correct?

(A) A company is an artificial person.

(B) Company's shares are generally transferable.

(D) The part of capital which is called up only on winding up is called reserve capital.

Choose the correct answer from the options given below:

2026: 29 May Shift 1

In case a company issued shares of face value Rs 100 in consideration of a building purchased for Rs 10,80,000, at the following issue prices. Match List-I with List-II.

List-I (Issue price of share)	List-II (No. Of shares to be issued)
(A) Rs. 120	(I) 7,200
(B) Rs. 90	(II) 8,640
(C) Rs. 125	(III) 12,000
(D) Rs. 150	(IV) 9,000

Choose the correct answer from the options given below:

2026: 19 May Shift 1

Following is the extract of journal in BXC Ltd for Forfeiture of shares:

Date	Particulars	Debit(Rs.)	Credit(Rs.)
i	Share Capital A/c Dr.	20,000
	To Shares Forfeiture A/c		14,000
	To Share Second & Final Call A/c		6,000
	(Being shares forfeited for non-payment of final call at Rs.30 per share)
ii	Bank A/c Dr.	9,000
	Shares Forfeiture A/c Dr.	6,000
	To Share Capital A/c		15,000
	(Being Reissue of shares of Rs.100 each, issued as fully paid for Rs.60 each)

Which of the followings statements are true ?

(A) The number of reissued shares is 150.

(B) The number of reissued shares is 200.

(D) The amount of share forefeited A/c transferred to capital reserve A/c will be Rs 4500.

Choose the correct answer from the options given below:

2023: 20 June Shift 2

Record journal entry for forfeiture of Rahul's shares.

R Ltd purchased a building from X Infra for Rs 6,00,000 and the payment is to be made by the issue of shares for Rs 100 each at a premium of 20%. Calculate the number of shares to be issued.

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