Give any one purpose for which the amount received as 'Securities Premium' may be utilised.

State the steps other than rejecting applications that a company can take in case of over subscription.

What arr preliminary expenses?

Give the definition of a share.

'Sulabh Ltd.' invited applications for issuing 1,50,000 equity shares of Rs.10 each at a premium of Rs.3 per share. The amount was payable was payable as follows:
On application - Rs.2 per share
On allotment - Rs.6 per share (including premium)
On first and final call - the balance
Applications for 2,00,000 shares were received and shares were allotted on pro-rata basis to all the applicants. Excess money received with applications was adjusted towards sums due on allotment. Suman who had applied for 2,000 shares failed to pay the allotment and call money. Raman failed to pay first and final call on his 500 shares. Shares of both Suman and Raman were for feited after the final call was made. The forfeited shares were re-issued for Rs.10 per share as fully paid up.
Pass necessary Journal Entries fr the above transactions in the books of the company.

Moti Ltd. invited applications for issuing 10,00,000 equity shares of Rs.10 each at a premium of Rs.2 per share. The amount was payable as follows:
On Application               -Rs.5 (including premium)
On Allotment                  - Rs.4
On First and Final Call - Rs.3
Applications for 15,00,000 shares were received. Applications for 3,00,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Excess application money was utilised towards sums due on allotment. Giri who had applied for 24,000 shares failed to pay the allotment and call money. His shares were forfeited. Out of the forfeited shares, 10,000 shares were reissued for Rs. 8 per share fully paid up. Pass the necessary journal entries in the books of Moti Ltd.

DP Shah Company Ltd made an issue of 1,00,000 equity shares of Rs 10 each at a premium of 30% payable as follows

On application Rs 3.50 per share, on allotment Rs 6.50 per share, balance on first and final call.

Applications were received for 2,00,000 equity shares and the directors made pro-rata allotment. Harsh, who had applied for 1,600 shares did not pay the allotment and final call money, as a result his shares were forfeited. Later on, 60% of the forfeited shares were re-issued at Rs 8 per share fully paid-up.

Pass necessary journal entries for the mentioned transactions in the books of the company.

Radha Ltd invited applications for 2,000 equity shares of Rs 100 each, payable as follows

Rs 25 on application, Rs 40 on allotment, Rs 35 on first and final call.

Applications were received for 2,500 shares. It was decided to allot the shares as under 

W, who applied for 500 shares was allotted 300 shares.

X, who applied for 1,200 shares, were allotted 1,000 shares.

Y, who applied for 800 shares, was allotted 700 shares.

All money was received except from X who did not pay anything after application, Juournalise.

Inderjeet Ltd made an issue of 75,000 shares of the par value o f Rs .50 per share. The issue was oversubscribed to the extent of 25,000 shares and allotment as made as under
(i) Applications of 5,000 
(ii) Applications of 10,000 shares are allotted in full.
(iii) For the balance 85,000 shares, the pro-rata allotment was made.
Journalise the above transactions, when the company called rs 20 on applications, Rs 20 on allotment and the balance on first and final call. Also, identify the value violated by the company.

Star Mills Ltd was registered with a capital of Rs 5,00,000 divided into 20,000 shares of Rs 25 each. The company offered to public for subscription 10,000 shares payable Rs 5 per share on application, Rs 5 per share on allotment and the balance in two calls of Rs 7.50 each. The company received applications for 11,600 shares. Applications for 1,000 shares were rejected altogether and applications money was returned to the applicants. A person who applied for 1,000 shares was allotted only 400 shares and excess of his application money was carried forward towards the payment of allotment and calls. Give journal entries to record the above issue of shares and show how it will be shown in the balance sheet.

A Ltd forfeited 200 shares of Rs 10 each, Rs 7 called-up on which M had paid application and allotment money of Rs 5 per share. Of these, 150 shares were re-issued to N as fully paid-up for Rs 6 per share. Pass necessary journal entries.

Can the forfeited shares be re-issued at a discount?