In such a situation the application money received from such applicants is returned to them. However if company fail to repay the un-utilized share application money within the prescribed time limit of 15 days fixed for repayment of un-utilized Application money, it will be required to be re-paid with interest at the rate of 12% per annum. A public unlisted company has accepted share application money However if company fail to repay the un-utilised share application money within the prescribed time limit of 15 days fixed for repayment of un-utilised Application money, it will be required to be re-paid with interest at the rate of 12% per annum. In case company fails to allot securities against the share application money within the period of 60 days, it shall repay the application money within 15 days thereafter without interest. But after the above said amendment allotment of securities shall be completed within sixty days 60 days from the receipt of share application money.
Penal provisions i.e. charging of interest on application money @ 12% p.a., in case fail to repay the same within prescribed time limit. Time Limit within which Application money should be refunded in case of failure to allot security within 60 days of receipt of application money. Time Limit within which Allotment of security should be done against the receipt of application money. 3.And can it utilize the fund for purchasing assets or for business(since its cash and bank balance is less than the amount of share application)
- When the otp code is requested from the list, for example, for the Twitter application, the approver is expected to send an instant message and approve the otp code sharing.
- As soon as the allotment is made, the applicants will become share-holders and are legally liable to pay all the amounts due on the shares allotted to them.
- Marketers must determine the assortment of products they are going to offer consumers.
- In order to analyse each product line, product- line managers need to know two factors.
- (e) Shares can be forfeited (i) for non-paymnt of call money (ii) for failure to attend meetings (iii) for failure to repay the loan to the bank (iv) for which shares are pledged as a security.Answer (i) For non-paymntof call money
Receipt of Application Money:
- A unit of capital or an equal portion of the share capital of an organisation divided, whose ownership is evidenced by a share certificate is known as a Share.
- Yes, NetBanking can be used to handle payments for share application accounts, and it is often required to link your bank account to your Demat account for seamless investment in shares.
- Expenses on the issue of shares amounted to ₹7,000.
- But after the above said amendment allotment of securities shall be completed within sixty days 60 days from the receipt of share application money.
Both the calls were made and all the money were received except the final call on 500 shares which were forfeited. 300 of the forfeited shares were later on issued as fully paid at Rs.9 per share. Give journal entries and prepare the balance sheet Practically, it will be quite irrational to refund the excess money first and then ask the allottee applicants to pay the allotment money. Punjab Steel Company Limited has been incorporated. Its capital is divided into 8,000 equity shares of Rs. 100.
Related Questions
(x) Where shares or other securities are to be allotted for consideration other than cash, the valuation of such consideration shall be done by a registered valuer who shall submit a valuation report to the company giving justification for the valuation. (viii) The allotment of securities on a preferential basis made pursuant to the special resolution passed pursuant to sub-rule (2)(b) shall be completed within a period of 12 months from the date of passing of the special resolution. If the allotment of securities is not completed within 12 months from the date of passing of the special resolution, another special resolution shall be passed for the company to complete such allotment thereafter.
It is a representative personal account. If the money due on call remains unpaid So when the products are not satisfactorily performing, the product managers need to drop them form the product line. This may lead to increase in profitability. Thus line pruning is consciously taken decision by the product manager to drop some product variants from the line. For example Heads and Shoulders is a well-known brand of shampoo from P&G, which had 31 versions.
(iii) No fresh offer or invitation under this section shall be made unless the allotments with respect to any offer or invitation made earlier have been completed or that offer or invitation has been withdrawn or abandoned by the Company. Question 4 Which of the following options cannot be the prim for the Classic Banking program? O Nominee O AUS with no financial rights O Other than first holder in a joint account O All of the above Use advanced charting and analytical tools to improve your trading experience- all with your existing share.market account Debit Cash account xxxxxCredit Share application account xxxxxEntry 2Debit Share Application account xxxxxCredit Share Capital Account xxxxx (3) All monies payable on subscription of securities shall be paid through cheque or demand draft or other banking channels but not by cash.
Answer(a) On forfeiture, share capital is debited with called up amount i.e.,X 8.(b) The total price of money collected from 1st issue and reissue should be equal to face value atleast. (f) The balance of share forfeited account after the reissue of forfeited shares is transferred to (i) general reserve (ii) capital redemption reserve (iii) capital reserve (iv) reveneue reserveAnswer (iii) Capital All monies received in respect of the share issue were posted to the bank account and a share issue holding account until the shares were allotted. The share capital of a company may be subject to certain changes.
A company issued 20,000 shares of Rs 10 each to the public payable Rs. 2 on application, Rs. 4 on allotment and Rs. 4 on final call. Applications were received for 25,000 shares. Pass the journal entries in following cases assuming that the amounts due were received;
Issue of share at premium
•(v) The shares issued within two months from the date of receiving sanction for the same from the government or within such extended period as the government may allow.(vi) If the offer prospectus at the date of issue must mention particulars of the discount allowed on the issue of shares. It is noted that the company should pay dividend out of profits only.(ii) Non-Cumulative Preference Shares If unpaid dividend lapses, the share is said to be non-cumulative preference share. Preference shares are non-convertible unless otherwise stated. Generally, the capital of a company is divided into small parts known shares, the ownership of which is transferable subject to certain terms s conditions.Characteristics of Company(i) Incorporated Association A company comes into existence through the operation of law. Therefore, its incorporation under the Companies Act is must. Without such registration, no company can come into existence.
Being created by law, it is regarded as an artificial legal person.(ii) Separate Legal Entity A company has a separate legal entity, which is not affected by changes in the membership. Therefore being a separate entity, a company can contract, sue and be used in its corporate name and capacity.(iii) Artificial Person A company is an artificial and juristic person that is created by law.(iv) Limited Liability Every shareholder of accompany share application account is has limited liability. His liability is limited to the extent of the unpaid value of the shares held by him. If such shares are fully paid up, he is subject to no further liability.(v) Perpetual Existence The existence of company is not affected by the death, retirement, and insolvency of its members.
It becomes share capital only on allotment of security. In view of this, share application money pending allotment should be treated as current liability in books of accounts and should be disclosed as a current liability and not as a part of share capital. Regarding time limit to convert such share application money into capital the law was completely silent. Practically speaking allotment of shares cannot be kept pending indefinitely. It would also not be proper for a company to indefinitely hold up allotment of shares.
(vi) The securities allotted by way of Preferential offer shall be made fully paid up at the time of allotment. (vi) In the Board Meeting pass the resolution for allotment and issue of shares. (iii) Issue the Letter of offer to all the existing shareholders through registered post or speed post or through electronic mode at least three days before the opening of the issue.
Product Levels:
A group of products within the product family recognised as having a certain functional coherence. For instance, personal computer (PC) is one product class. At this level, the marketer prepares an expected product by incorporating a set of attributes and conditions, which buyers normally expect they purchase this product. For instance, hotel customers expect clean bed, fresh towel and a degree of quietness. Theodore Levitt proposes that in planning its market offering, the marketer needs to think through 5 levels of the product.
(xiv) Once the allotment is made, the company shall within 30 days of allotment, file with the Registrar a return of allotment in E-Form PAS.3, along with the fee as specified in Companies (Registration of Offices and Fees) Rules, 2014. (xii) Where the non-cash consideration takes the form of a depreciable or amortizable asset, it shall be carried to the balance sheet of the company in accordance with the accounting standards. (v) In General Meeting pass the Special Resolution for Preferential Allotment of shares. (ii) Issue Notice for convening Board Meeting for making the proposal for Preferential Allotment of shares and approval of notice of convening the General Meeting. (i) Check the provision in the Articles of Association of the Company regarding Preferential Allotment of shares and if the same is not there then the Articles of Association needs to be amended suitably as per the provisions of the Companies Act, 2013. (viii) File E-Form MGT-14 with Registrar of Companies within 30 days of Board meeting for resolution passed in the Board Meeting for allotment of securities.
Applications for the remaining shares were rejected and the application money was refunded. All moneys due were received with the exception of the final call on 600 shares which were forfeited after legal formalities were fulfilled. 400 shares of the forfeited shares were reissued at Rs.9 per share.Record necessary journal entries and prepare the balance Sheet showing the amount transferred to capital reserve and the balance in Share forfeiture account. Share capital can include share application money if the amounts have been received from potential shareholders but not yet formally allotted as shares. This money is typically recorded as a liability until the shares are officially issued.
Chapter Notes – Accounting for Share Capital Free PDF Download
Each level adds more customer value and taken together forms Customer Value Hierarchy. Some firms sell a single product; others sell a variety of products. A product item refers to a unique version of a product that is distinct from the organisations other products.
A unit of capital or an equal portion of the share capital of an organisation divided, whose ownership is evidenced by a share certificate is known as a Share. Simply put, shares are the denominations of the share capital of an organisation. For example, if the total capital of ABC Ltd. is ₹10,00,000 and is divided into 10,000 units of ₹100 each. Each unit of ₹100 will be called a share. To easily identify the shares, it is essential to give them numbers.