Company Accounts

Share Capital

Easy

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 immediately after 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.

Rohan to whom 600 shares were allotted must have applied for:

650 Shares

750 Shares

700 Shares

800 Shares

✅ Correct Option: 3

Applications were received for 40,000 shares, but pro-rata allotment was made only on applications for 35,000 shares. This means 30,000 shares were allotted among 35,000 applications.

Pro-rata ratio = Shares Allotted : Shares Applied for pro-rata

= 30,000 : 35,000

= 6 : 7

This means for every 7 shares applied, 6 shares were allotted.

Rohan was allotted 600 shares.

Using the pro-rata ratio:

$\frac{\text{Shares Applied}}{\text{Shares Allotted}} = \frac{7}{6}$

$\frac{\text{Shares Applied}}{600} = \frac{7}{6}$

Shares Applied = $\frac{600 \times 7}{6}$ = 700 shares

Therefore, Rohan must have applied for 700 shares.

2025: 30 May Shift 1

Rahul Limited purchased a building from Handa Limited for Rs.5,40,000 and the payment is to be made by the issue of shares of Rs.100 each. What will the number of shares to be issued when shares issued at a premium of 20%?

2025: 30 May Shift 2

Arrange the important steps in the correct sequence in the procedure of share issue:

(A) Receipt of Applications

(B) Allotment of Shares

(D) Issue of Prospectus

Choose the correct answer from the options given below:

2025: 3 June Shift 1

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.

2025: 4 June Shift 2

The Profit on reissue of forfeited shares is transferred to:

2026: 29 May Shift 2

Which of the following are correct with respect to Rule 3 of the Companies (Incorporation) Rules, 2014 for One Person Company?

A. Only a natural person being an Indian citizen and resident in India can form one person company.

B. It cannot carry out non-banking financial investment activities.

C. Its paid up share capital is not more than Rs. 50 Lakhs.

D. Its average annual turnover of three years does not exceed Rs. 5 Crores.

Choose the correct answer from the options given below:

2023: 20 June Shift 2

Balance of Share Forfeiture account is shown in the Balance Sheet under the item:-

Rohan to whom 600 shares were allotted must have applied for:

Solution

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