List of top Accountancy Questions on Issue of Shares asked in CUET (UG)

Passage: Issue and Forfeiture of Shares On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account. % Question What amount will be credited to Equity Share Application Account on February 10, 2024?

The important steps in the procedure of share issue are: (A) The company issues the prospectus to the public.
(B) The company has to get minimum subscription within 120 days from the issue of prospectus.
(C) The prospective investors make an application with application money.
(D) Letters of allotment are sent to those allotted shares (or regret letters to those rejected).

Minimum subscription is the minimum amount that, in the opinion of directors, must be raised to meet the needs of business operations of the company relating to: (A) The price of any property purchased, or to be purchased, which has to be met wholly or partly out of the proceeds of issue;
(B) Preliminary expenses payable by the company and any commission payable in connection with the issue of shares;
(C) Working capital;
(D) Any other expenditure required for the usual conduct of business operations
Choose the correct answer from the options given below:

What is the amount of excess application money credited to Share Allotment and money refunded on rejected application in totality?