Abhinav Bhoomika Shramana & Co. issued a prospectus inviting application for 1,00,00 shares ofRs. 10 each (Rs. 2 for application, Rs. 4 for allotment and Rs. 4 for final call). The company receivedapplications for 1,10,000 shares along with the application money. The company allotted 1,00,000shares and returned back the rest of the money. The company received all the money except thefinal call money for 1000 shares and decided to forfeit these shares. Finally, the company reissuedthese shares at Rs. 9 each.Pass the journal entries for the above transactions.

Company means the form of business where management is separately from owner and have perpetual…

Answered: Abhinav Bhoomika Shramana & Co. issued…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Adam Company Limited was incorporated on 1st April to take over as from 1st January in the same year the existing business of Bijoy Brothers. Under the take over agreement all profits made from 1st January are to belong to the Company. The purchase consideration was $ 7,00,000. The vendors received half of it in cash on 1st July in the same year together with interest at 10 per cent per annum. For other half of the purchase consideration, they were allotted 3,500 fully paid up shares of 100 each in the Company. Following balances appeared in the Company's Ledger as at 31st December : 2$ 12,000 48,000 13,000 7,000 3,000 22,000 10,400 17,500 7,70,000 9,10,000 3,100 Share Capital:4,500 shares of $ 100 each fully paid (including vendors' shares) Bank Overdraft Cash on Hand Salaries and Wages Rent Received 4,50,000 1,65,000 Rates and Taxes 65,000 Repairs to Building 35,000 50,000 1,30,000 15,000 35,000 4,20,00 95,000 Sundry Creditors Fixed Deposits Received Freehold Land at Cost…
2) Andrew bought 10,000 shares of stock B at $2 per share. At the end of the year, he sold all the shares at $2.50 per share. The transactions payable for share transactions in Singapore are: Clearing fee Trading access fee Brokerage commission 0.0325% 0.0075% 0.2800% In addition to the above cost, Andrew has to pay GST of 7% on the total transaction cost (i.e. sum of clearing fee, trading access fee and brokerage commission). Calculate Andrew's profits in dollars and return.
Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 39,300 shares of its common stock at $42 per share. On September 22, Mystic Lake sold 30,100 of the reacquired shares at $49 per share. The remaining 9,200 shares were sold at $41 per share on November 23. Required: a. Journalize the transactions of July 9, September 22, and November 23. Refer to the Chart of Accounts for exact wording of account titles. b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? c. For what reasons might Mystic Lake Inc. have purchased the treasury stock?
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Uramilaben
Give the necessary Journal Entries to record the following transactions : (a) A shareholder was holding 500 equity shares of $ 10 each of a company issued at 10% discount. He paid $ 2 on application, $ 3 on allotment but could not pay the first call of $ 3 per share and his shares were forfeited by the directors. These shares were reissued subsequently at a price of $ 7 per share. (b) A holds 200 equity shares of $ 10 each on which he paid $ 1 per share as application money. B holds 300 equity shares of $ 10 each on which he has paid $ 1 and $ 3 per share as application and allotment money respectively. Cholds 500 equity shares of $ 10 each on which he has paid $ 1 on application, $ 3 on allotment and $ 2 on first call. They all fail to pay their arrears and the second call of $ 2 per share and the directors, therefore, forfeited the shares. All these shares were reissued subsequently @ $ 11 per share as fully paid.
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