Issue, Forfeiture & Reissue of Shares Exercises 1.105 (A) Short Answer Problems 1. Anand Ltd. Purchased land for Rs. 80,000 from Kailash Bros. It issued equity shares of Rs. 10 each fully paid up in satisfaction of their claim. Make journal entries to record these transactions. 2. Nahid Ltd. purchased the business of 'Rahim' Bros. for Rs. 2,00,000 payable in fully paid shares of Rs. 100 each. What entries will be made in the books of Vahid Ltd. if such issue is : (i) at Par; (ii) at a premium of 10%; and (iii) at a discount of 10%? 110000 3. A limited company purchased a machine worth Rs. 1,15,000 from Indian Traders. Payment was made as to Rs. 10,000 by a crossed cheque and remaining amount by issue of equity shares of the face value of Rs. 10 each fully paid at an issue price of Rs. 10.50 each. Make entries in company's journal. [Senior Sec. Exam. (Delhi) 1992] 4. 10,000 equity shares of Rs. 20 each are issued for Public subscription at a premium of 10%. The full amount is payable on application. Applications were received for 20,000 shares and it was decided to make pro-rata allotment to all the applicants. 16001