5. Use of simple calculator is allowed.

1. You are working as an accountant in Primrose Ltd. The company issued a prospectus inviting applications for 60,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share payable as Rs. 2 per share on application, Rs. 5 per share on allotment (inchuding premium), Rs. 3 per share on first call and Rs. 2 per share on second and final call. Applications were received for 90,000 shares and pro rata allotment was made on the

applications for 72,000 shares, rejecting the remaining applicants. Money overpaid on applications was employed on account of sum due on allotment. Ramesh, to whom 1,200 shares vere alotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited. Mohan, the holder of 1,800 shares, failed to pay the two calls, and is shares were forfeited after the second call. Of the forfeited shares, 2,400 shares were sold to Krishna credited as fully paid @ 9 per share, the whole of Ramesh's shares being included. Pass he necessary journal entries in the books of Primrose Ltd. our friend has recently joined Rosebud Ltd which is planning to redeem Preference Share Capital of Rs. 1500000 at a premium of 10%. The company has securities premium Rs. ,00,000; General Reserve Rs. 4,50,000. Your friend has asked your advice regarding this. Calculate the amount of fresh issue of shares which Rosebud Ltd. is required to make as per section 55 of the Companies Act 2013. Also state the points which you will advise your friend to

eep in mind for redemption of preference shares to meet the legal requirements.