Equity Shares and Capital

Share allotment A/c Dr      (Amount due)         To share Capital Cash Dr                           (Amount Received) Call in Arrears Dr           (Amount due)         To share allotment  Thus, there will be debit balance in share allotment account.

Issued Capital is that part of nominal capital that is offered to the public for subscriptionSubscribed Capital is that part of the issued share capital, which is subscribed by the public i.e., applied by the public and allotted by the company. It also includes the face value of shares issued by the company for consideration other than cash.

Balance in Share forefeiture for 50 shares      =Rs 1500 (50*30) Balance in Share forefeiture for 20 shares      =Rs 600 [(20/50)*1500]Adjusted towards share capital                         =Rs 200(20*10)

Profit on re-issue w.r.t 20 shares                    =Rs 400 (600-200) 

Balance in Call Arrears A/c            = rs 2000 Amount received on re-issue         = Rs 8000 (8*1000) Amount of Profit on re-Issue           = 8000-2000 = Rs 6000

As per Section 55 of Companies Act.2013,where preference shares are redeemed, otherwise than out of the proceeds of a fresh issue of shares (either equity or prefernce), there shall, out of profits which would otherwise have been available for dividends, be transferred to Capital Redemption Reserve Account, a sum equal to the nominal amount of the shares redeemed.

Balance in Share Forefeture account                    =Rs5000 (already received) Amount adjusted towards share capital since shares are issued at Rs 70, Rs 80 paid up =Rs 1000 Amount of profit                                                           = rs (5000-1000)                                                                                        =Rs 4000  

Debenture Interest is payable irrespective of the fact that the company makes profit or loss. It is like any other expense of the company which is to be paid before payment of preference as well as equity dividend.

As per Section 55 of the Companies Act, 2013 Preference Shares can be redeemed out of fresh issue of equity shares or out of profits. However, where any such shares are redeemed, otherwise than out of the proceeds of a fresh issue, there shall, out of profits which would otherwise have been available for dividends, be transferred to Capital Redemption Reserve Account, a sum equal to the nominal amount of the shares redeemed.

Authorized Share Capital is the maximum amount of Share capital that a company can issue during its lifetime. Redemption of prefernce share doesnot cause any reduction in this maximum limit, i.e. Authorised Share Capital. Redemption of preference shares causes causes a redution in Subscribed and Issued Share Capital of a company.

The proceeds of fresh issue of debentures is not to be utilised for redemption of preference shares. An amount equal to face value of preference shares is to be transferred to the Capital Redemption Reserves if shares are redeemed out of divisible profits.Thus, in the given case, amount to be transferred to CRR would be Rs 1,00,000 since the proceeds of debentures cannot be utilised for the redemption of preference shares.

As per SEBI regulations, listed equity shares must be valued at the last traded price on the stock exchange where the security is principally traded. This ensures fair and current market valuation. Average price (NSE) or lowest price (BSE) are not the prescribed methods. Cost price is irrelevant for daily valuation. The LTP method provides the most accurate current market value for NAV calculation.

As per Indian regulations, quoting PAN number is compulsory for investments of Rs. 50000 or more. This requirement is part of KYC (Know Your Customer) norms and helps prevent tax evasion and money laundering. The PAN requirement is based on the investment amount, not on whether the investor has a PAN or tax liability.

SEBI mandates caps on distribution expenses (typically 1-2% of net assets). Any expenses exceeding these regulatory limits must be borne by the AMC, not charged to the scheme/unit holders. This protects investors from excessive costs.

After a dividend is declared, unit-holders must receive the dividend within 30 days. SEBI regulations mandate this timeline to ensure timely distribution of dividends to investors. The option '3D-days' appears to be a typo for '30 days'.

Unit holders have rights to dividends declared for the specific scheme they hold and proportionate ownership of that scheme's assets. However, different schemes in the same mutual fund house are separate trusts with distinct asset pools - unit holders have no rights to dividends from other schemes.