ISSUE OF SHARES & DEBENTURES XII COMMERCE

Transcription

1 ISSUE OF SHARES & DEBENTURES XII COMMERCE

2 Q#1 Nishat & Co. issued 80,000 ordinary shares of Rs. 10 each for public subscription. After 10 days they received applications for 100,000 ordinary shares. After allotting 80,000 shares they refunded the excess money to non-allotters. Q#2 Ali & Co. received applications of 60,000 ordinary shares of Rs. 10 each. After allotting 50,000 shares they refunded the excess money. Q#3 Fayyaz & Co. issued 75,000 ordinary shares of Rs. 10 each for public subscription. After some time they received applications for 65,000 ordinary shares not taken up by the public taken up by the underwriter. Q#4 Aftab & Co. issued 80,000 ordinary shares of Rs. 10 each at Rs. 12 per share. They received applications for 90,000 shares. They allotted 80,000 shares and refunded the excess money. Q#5 Saad & Co. issued 40,000 ordinary shares of Rs. 10 each at Rs. 8 for public subscription. They received applications for 45,000 ordinary shares. They allotting 40,000 shares and refunded the excess money. Q#6 Umair & Co. issued 35,000 ordinary shares of Rs. 10 each and 20,000 preference shares of Rs. 100 each. They received applications for 50,000 ordinary and 25,000 preference shares from the public. After allotting the shares they refunded the excess money. Q#7 Adeel & Co. issued 60,000 ordinary shares of Rs. 25 each at Rs. 28 each and 40,000 preference shares of Rs. 50 each at Rs. 55. They received applications for 70,000 ordinary shares and 36,000 preference shares. They allotting 60,000 shares and refunded the excess money of ordinary shares to nonallottees. The 4,000 preference shares not taken up by the public taken up by the underwriter. The company also paid preliminary expense of Rs. 10,000. Pass general entries for all questions above and Balance Sheet for Question no. 7. Q#8 Nadeem & Co. issued ordinary shares of Rs. 10 each as follows. Pass general entries for each of the following cases. (a) Issued 6,000 ordinary shares of Rs. 10 each at par. (b) Issued 5,000 ordinary shares at Rs. 13. (c) Issued 7,000 ordinary shares at Rs. 9 (d) Issued 10,000 ordinary shares and 5,000 preference shares at Rs. 14 & 105 (e) Issued 6,500 shares at Rs each 2

3 Q#9 Saleem & Co. issued ordinary shares of Rs. 100 each as follows. (a) Issued 6,000 shares for the purchase of building which cost Rs. 600,000. (b) Issued 400 shares to the promoters in consideration of their service being rendered for the Co. (c) Purchase machinery of Rs. 100,000 and issued 1,100 ordinary shares in consideration. (d) Purchase building of Rs. 10,000,000 and paid Rs. 500,000 in cash and issued shares for the balance. (e) Purchase Equipment of Rs. 30,000 and issued 250 shares in consideration. Q#10 Ashfaque & Co. issued Ordinary shares of Rs. 10 each as follows. (a) Purchase a Building of Rs. 500,000. Machinery of Rs. 200,000 and Equipment of Rs. 100,000. In consideration of these assets the Co. Issued 75,000 ordinary shares. (b) Issued 4,000 shares to its promoters in consideration of their services. (c) Purchased a Land and Building costing Rs. 120,000 and 180,000 respectively, and issued in consideration 32,000shares. (d) Purchased Land of Rs. 500,000 and issued 40,000 shares in consideration and balance in cash. (e) Purchased IBM Computer of Rs. 200,000 and issued shares in consideration. (f) Purchased Furniture of Rs. 50,000 and issued 4,500 shares. Q#11 Give general entries for each of the following separate cases. (a) Automobile having fair market value of Rs. 50,000 was acquired by allotting 4,000 Ordinary shares of Rs. 10 each fully paid up. (b) Vessel was acquired 50,000 Ordinary shares of Rs. 10 each were fully paid up. The shares are quoted in shock Rs. 12. (c) Marina Ltd. Acquired Office Equipment from Salman & Co. The cost of equipment is Rs. 30,000. Marina Ltd. Allots 3,300 Ordinary shares of Rs. 10 each fully paid up to Salman & Co. in payment of this purchase. Q#12 Akber & Co. issued Ordinary shares of Rs. 10 each as follows. (a) Issued ordinary shares in consideration of purchase of Building of Rs. 500,000. (Market value Rs ). (b) Purchased Equipment of Rs. 300,000 and issued shares in consideration. (Market value Rs. 8). (c) Purchased a Building and a Land of Rs. 300,000 and issued 100,000 respectively, and issued shares in consideration. (Market value Rs. 8). (d) Purchased machinery by issuing 35,000 ordinary shares. (Marking value Rs. 13). (e) Purchased Furniture by issuing 4,000 ordinary shares. (Marking value Rs. 7). Q#13 Ather & Co. Issued Ordinary shares of Rs. Each as follows. (a) Purchased a Plant Asset of Rs. 1,000,000 and issued shares in consideration. (Market value of shares is Rs. 8). (b) Purchased Machinery of Rs. 600,000 and issued shares in consideration. (Market value of Rs. 15). (c) Purchased Machinery of Rs. 100,000 and issued shares in consideration. (Market value of Rs. 8). (d) Purchased Machinery of Rs. 35,000 ordinary shares of Rs. 10 each. (Market value of Rs. 14). (e) Purchased a Land and Issued 10,000 ordinary shares. (Market value of Rs. 7). (f) Issued 3,000 shares to Mr. Kamal in consideration of his services. 3

4 Q#14 Azhar & Co. issued shares as follows (Face value of shares Rs. 10). (a) Purchased a Typewriter and issued 200 ordinary shares of Rs. 10 (Market value Rs. 12). (b) Issued 5,000 ordinary shares in payment of debentures of Rs. 50,000. (c) Issued 6,000 ordinary shares in payment of Bonds Payable of Rs. 50,000. (d) Issued 4,000 shares as stock divided. (e) Issued shares in payment of a bonds payable of Rs. 50,000 (Market value Rs ). (f) Issued 4,000 shares in payment of debenture payable. (MV Rs. 9). Q#15 Uzair & Co. issued ordinary shares of Rs. 10 each as follows. (a) Issued 500 shares as stock divided. (b) Issued 5,000 shares and paid in cash Rs. 40,000 in payment of Bonds payable. (c) Issued 500 shares as stock divided. (Market value Rs.14). (d) The Co. declared divided of Rs. 50,000 and issued shares to their stockholder. (Market value Rs. 8) (e) Paid Rs. 50,000 cash and issued 1,000 ordinary shares as their divided. Q#16 Eastern Company Ltd. was incorporated with a capital of Rs. 2,000,000 divided into 200,000 ordinary shares of Rs. 10 each. The Company took over the running business of Uzair Brothers. The Balance Sheet items of the business of Uzair Brothers as of the date of purchase were as under:- Cash Rs. 20,000 Accounts Receivable 56,000 Merchandise Inventory 80,000 Offices Supplies 4,000 Machinery 200,000 Allowance for Depreciation (machine) 120,000 Accounts payable 40,000 The company took over the business assets other than cash and assumed the liabilities. In exchange the company issued 15,000 ordinary shares of Rs. 10 each as fully paid up. The company also made an addition issue of 30,000 shares of Rs. 10 each at Rs. 12 per shares to the public. (a) Give entries in the general journal of Eastern Company Limited. (b) Prepare initial Balance Sheet of the Company. Q#17 Sunrise Company Limited acquired the following assets from affirm. Merchandise Rs. 30,000 Office Equipment 50,000 Machinery 120,000 Purchase consideration for the above assets was paid partly in cash and partly by issue of shares. Make entries in the general journal of Sunrise Company under each of the following cases separately. (a) Cash payment of Rs. 50,000 and balance by issued of 15,000 ordinary shares of Rs. 10 each. (b) Cash payment of Rs. 40,000 and balance by issued of 18,000 ordinary shares of Rs. 10 each. (c) Cash payment of Rs. 30,000 and balance by issued of 16,000 ordinary shares of Rs. 10 each. 4

5 Q#18 National & Co. Issued 1,000 debentures of Rs. 100 each redeemable after five years as follows. (a) Issued at 100 & redeemable at 100. (b) Issued at 100 & redeemable at 106. (c) Issued at 100 & redeemable at 93. (d) Issued at 107 & redeemable at 100. (e) Issued at 104 & redeemable at 109. (f) Issued at 106 & redeemable at 102. (g) Issued at 105 & redeemable at 93. (h) Issued at 97 & redeemable at 100. (i) Issued at 93 & redeemable at104. (j) Issued at 91 & redeemable at 95. (k) Issued at 97 & redeemable at 92. Q#19 Pak company issued 1000% debentures of Rs. 10 each redeemable after five years as follows. (a) Issued at 8 & redeemable at 13. (b) Issued at 12 & redeemable at 9. (c) Issued at 10 & redeemable at 12. (d) Issued at 9 & redeemable at 10. (e) Issued at 14 & redeemable at 11. (f) Issued at 10 & redeemable at 10. (g) Issued at 8 & redeemable at 9. (h) Issued at 14 & redeemable at 10. (i) Issued at 10 & redeemable at 7. (j) Issued at 8 & redeemable at 6. (k) Issued at 12 & redeemable at 16. Q#20 Pearl Gray Company issued 25,000 12% debentures to the public of Rs. 20 each redeemable after five years as follows. (a) Issued at 23& redeemable at 18. (b) Issued at 20 & redeemable at 24. (c) Issued at 18 & redeemable at 23. (d) Issued at 25 & redeemable at 22. (e) Issued at 20 & redeemable at 20. (f) Issued at 24 & redeemable at 20. (g) Issued at 16 & redeemable at 19. (h) Issued at 20 & redeemable at 17. (i) Issued at 15 & redeemable at 20. (j) Issued at 21 & redeemable at 25. (k) Issued at 18 & redeemable at 13. 5