Question

Issues of shares exercise sums answers

Answer 1

Answer:

Here is a compilation of top six accounting problems on issue of shares with its relevant solutions.

Problem 1 (Issue of Shares at Par—Journal, Cash Book and Balance Sheet):

A Limited Company issued 25,000 Ordinary Shares of Rs. 25 each payable Rs. 5 on application, Rs. 10 on allotment and Rs. 5 each on subsequent calls, 20,000 shares were fully- subscribed and moneys duly received. You are required to give journal entries, Cash Book and Balance Sheet of the company.

Problem 2 (Over subscription, calls-in-advance and calls-in-arrears):

X Ltd. makes an issue of 20,000 Equity Shares of Rs.10 each at Rs. 11 on 1st March payable as follows:

Rs. 2 on Application