Program Name BBA 5th Sem.
Course Name Company Account
Faculty Name Rahul kumar
Assignment Number 01
Assignment Submission Date 23 NOV, 2024
1. Define Company & its features. Why companies needs huge amount of funds?
2. Explain the following terms: Shares & forfeiture of shares, Preference shares &
redemption of preference shares, Debentures
3. Define Preference Shares & redemption of them with an example. What are the various
conditions for redemption of preference shares?
4. Explain Share capital & its kinds? Why companies issues Equity shares?
5. Define Company & its features. Why companies needs huge amount of funds?
6. Explain Debentures & their kinds.
7. Differentiate between Debentures & Equity shares. Write the common journal entries for
issues of debentures with narrations assuming 12% interest rate.
8. Prepare Balance Sheet as Part I of Schedule III given in Companies Act, 2013.
9. Explain Share capital & its kinds? Why companies issues Equity shares?
10. Explain the following terms: Shares & forfeiture of shares, Preference shares &
redemption of preference shares, Debentures.
11. Greenfield limited forfeited 1,000 Equity shares of Mr. X of 100 each issued at a
premium of 10%, payable as follow:
Particulars Amount
On Application 25
On Allotment (including premium) 35
On First call 20
On Final call 30
Mr. X failed to pay Allotment & calls. Therefore directors forfeited his shares
and re-issued at 90/ share. Pass the necessary journal entries in the books of
Greenfield limited.
12. Bluedart limited issued 20,000 equity shares of 10 each at a premium of 3 per share on 01
April 2022, payable as follow:
Date Particulars Amount
01 May 2022 Application 4
01 June 2022 Allotment (including premium) 5
01 July 2022 First call 2
01 Aug 2022 Final call 2
All the shares were subscribed & money duly received except call money on 1500
equity shares. Pass the necessary journal entries in the books of Bluedart limited &
prepares Bank Account.
13. Indian Herbs limited issued 50,000, 7% Debentures of 100 each at a premium of 10% on
01 March, 2012 redeemable by conversion in to equity shares of 20 each at a premium of
5 per share on May 31, 2015. Record necessary entries for issue & redemption of
debentures.
14. Coal India limited issued 30,000, 5% Debentures of 100 each at a premium of 20% on 01
March, 2000 redeemable by conversion in to equity shares of 50 each at a premium of
20% on May 31, 2007. Record necessary entries for issue & redemption of debentures.
15. Tata limited issued 8,000, 10% Debentures of 100 each at par, payable as follow:
Particulars Amount
At the time of Application 25
At the time of Allotment 30
At the time of First call 25
At the time of Final call 20
Public applied for 10,000 debentures. Applications for 6,500 debentures were accepted
in full. Applications for 2,500 debentures were allotted 1,500 debentures & applications
for 1,000 debentures were rejected. Money overpaid on applications was utilized
towards the sum due on allotment. Pass necessary journal entries assuming all money
due were duly received, except the final call on 1,000 debentures.
16. Ranbaxy Pharmaceuticals Limited issued 8,000, 9% Redeemable Preference shares of
100 each on 01 April, 2000. These preference shares have to be redeemed on 31 March,
2006 at 10% premium. For meeting this obligation company have issued:
(1) 3,000 Fresh Equity shares of 100 each at 120.
(2) 5,000, 9% Preference shares of 100 each at 130
Give the necessary journal entries in the books of Ranbaxy Pharmaceuticals limited for
redemption of preference shares.
17. Following was the Trial Balance of Starfish Manufacturing company as on 31st March,
2009:
Particulars Amount (Dr) Amount (Cr)
Materials (01 April 2008) 6,500 -
Sales - 36,000
Purchase of Materials 26,000 -
Productive Wages 6,000 -
Discount 600 900
Interest 400 1,200
Salaries 1,000 -
Rent 770 -
Capital- 1,000 Share of 10 each - 10,000
Plant & Machinery 3,500 -
Insurance 1,260 -
You are required to make Trading & Profit & Loss Account for the year ended 31st
March, 2009 after taking following items in to consideration:
(1) Stock of materials on 31st March, 2009 is7,800.
(2) Depreciate Plant & Machinery @ 10% p.a.
(3) Rent of one month is still outstanding.
(4) Insurance is paid up to May 2009.
