Give the meaning of 'Minium Subscription'.

Give the definition of a share.

What is meant by 'reserve capital' ?

Zenith Ltd issued 1,00,000 equity shares of Rs 10 each at a premium of Rs 2 per share payable Rs 3 per share on application, Rs 5 per share (including premium) on allotment, Rs 2 per share on the first call and the balance on the second call. Raju was allotted 1,600 shares. Give necessary journal entries for forfeited in the books of the company when Raju could pay the allotment and the first call money and his shares were forfeited after the first call.

'Software Ltd.' Invited applications for issuing  70,000 equity shares of Rs.10 each on which Rs.7 per share were called up, which payable as follows:
On application - Rs.2 per share
On allotment    - Rs.3 per share
On first call       - The balance
The amount was received as follows:
On 40,000 shares - Rs.7 per share
On 20,000 shares - Rs.5 par share
On 10,l000 shares - Rs.2 per share
The directors for feited 30,000 shares on which less Rs.7 per share were received. Later on the forfeited shares were re-issued at Rs.5 per share, as Rs.7 per share were received. Later on the forfeited shares were re-issued at Rs.5 per share, as Rs.7 per share paid up.
Pqss necessary journal entries for the above transactions in the company.

Raja Ltd. invited applications for issuing 50,000 equity shares of Rs. 10 each and the amount was payable as follows:
On Application                - Rs.3 per share
On Allotment                   - Rs.5 per share
On First ans Final Call  - The balance
Appications for 70,000 shares were received. Allotment was made to all applicants on pro-rata basis. Excess money received on applications was
adjusted toward sums due on allotment. Ramesh who had applied for 700 shares, did not pay the allotment money and on his failure to pay the allotment
money, his shares were forfeited. After wards, the first and fiinal call was made. Adhar, who had been allotted 500 shares, did not pay the first and final
call. His shares were also for feited. Out of the for feited shares, 900 shares, 900 shares were reissued at Rs.8 per share fully paid up. The reissued
sharesincluded all the shares of Ramesh.
Pass necessary Journal Entries for the above transactions in the books of the company.

X Ltd invited applications for 10,000 shares of Rs 10 each at a premium of Rs.20 per share payable as Rs.20 (including 50% premium) on applications and the balance on allotment. Application money received rs 2,20,000. Name the kind of subscription.

Y Ltd invited applications for 10,000 shares of Rs10 each.Applications were received for 90,000 shares. Name the kind of subscription

X Ltd invited applications for 10,000 shares of Rs10 each. Applications were received for 15,000 shares. Name the kind of subscription. Give three alternatives for allotting shares.

Can securities premium be used as working capital? Give reason in support of your answer.

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.

Dinesh Ltd issued for public subscription 30,000 equity shares of Rs15 each at par, payable as follows
Rs 7 on application
Rs 5 on allotment
Rs 3 on first and final call
The company received applications for 40,500 shares. Journalise in each of the case mentioned below
(i) When excess applications are rejected.
(ii) When proportionate allotment is made.
(iii) When allotment is made hereunder.
 (a) Applications for 500 shares are rejected.
(b) Applications of 2,000 shares are allotted in full.
 (c) For the balance, pro-rata allotment is made.

Bhalla Ltd issued 15,500 equity shares of Rs.10 each, payable of Rs 3 on application, Rs 2 on allotment and Rs 5 on first and final call. The public applied for 11,500 shares. The shares were duly allotted. Pass necessary journal entries when cash book is maintained and only one account is opened for application and allotment.

Sarthak Ltd issued 1,25,000 equity shares of Rs10 each at a premium of Rs 2.5 per share, the whole amount being payable at the time of allotment. Pass necessary journal entries and prepare the balance sheet of the company, when

(i) Applications are received for 1,25,000 shares.

(ii) Applications are received for 1,20,000 shares

(iii) Applications are received for 1,40,000 shares.

Also, prepare cash book for case (iii) given above.

Sehgal Ltd issued 50,000 equity shares of Rs10 each at face value. the amount was payable at the time of making application for the shares. Pass necessary journal entries and prepare the company's balance sheet when

(i) Applications are received for 4,75,000 shares

(ii) Applications are received for 55,000 shares.