Here Hardcore Computers Ltd. issued to public 15,000 shares of Rs. 10 each at a premium of Rs. 2. Applications were received for 10,000 shares. The amount payable was as follows:
On application Rs. 3 per share
On allotment Rs. 4 per share (including premium)
On first and final call Rs. 5 per share
Mr. Perfect holder of 100 shares did not pay allotment and call money. The company forfeited all the shares of Mr. Perfect.
The amount called up per share = 3 + 2 + 5 = Rs. 10
Total amount called up for the forfeited shares = 100 × 10 = Rs. 1,000
So Share Capital a/c will be debited by Rs. 1,000

Here X consigned 100 packets of cosmetics each costing Rs. 300 to his agent at Bareilly. He paid Rs. 500 towards freight and insurance. 15 packets were destroyed in the way. So this is abnormal loss.
Valuation of damage
Cost of 100 packets sent = 30,000
Add:freight and insurance = 500
Total cost of 100 packets sent = 30,500
So the cost of 15 packets destroyed = 30,500 × 15/100 = Rs. 4,575
Value of Stock just before being unloaded at the consignees godown
= Cost of Goods + Consignors Direct Expenses + Proportionate Consignee Direct Expenses
The cost of the goods/stock implies the value at which the goods are consigned by the consignor to the consignee. Since the goods have reached the consignees godown, we can consider the consignor expenses on the goods to have been incurred. Moreover any direct expenses incurred by the consignee in relation to the transportation of the goods, octroi duties, insurance in transit etc., would also have to be considered as having been incurred on the goods

Therefore, the direct expenses incurred till that point would include the consignor expenses and that part of the consignee expenses which relate to the expenses incurred on the stock before being unloaded.
Now the cost of the 85 packets received by the consignee = 30,500 – 4,575 = Rs. 25,925
Add: Clearing charges = 1,000
Total cost = 26,925
Total units sold = 70 units
Units remaining in inventory = 15 packets
So the value of inventory = 26,925 × 15/85 = Rs. 4,751

The abnormal loss should be adjusted before ascertaining the result of the consignment. The valuation of abnormal loss is done on the same basis as the unsold stock is valued.
Here X consigned 100 packets of cosmetics each costing Rs. 300 to his agent at Bareilly. He paid Rs. 500 towards freight and insurance. 15 packets were destroyed in the way. So this is abnormal loss.
Valuation of damage
Cost of 100 packets sent = 30,000
Add:freight and insurance = 500
Total cost of 100 packets sent = 30,500
So the cost of 15 packets destroyed = 30,500 × 15/100 = Rs. 4,575

Retiring a bill means making payment before the date of maturity. When the acceptor of a bill is prepared to make the payment of the bill before the due date, he may ask the holder to accept the payment, provided he receives some rebate or discount for the unexpired period. Such a rebate or discount is an expense to the party receiving the payment and gain to the party making the payment.
Here Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2010. On 13.03.2010, Preet wished to retire the bill. Jeet offered rebate @ 12% p.a.
So the due date of the bill is 6th may
The bill was retired on 13.3.2010
So the period for which rebate will be allowed = 54 days
The rebate = 10,000 × 12% × 54/360 = Rs. 180

Sometimes, acceptor of a bill finds himself unable to meet his acceptance on the due date. So he may approach the drawer of the bill before the maturity date arrives, to cancel the old bill and draw a new bill with extended date. The acceptor in this case will of course have to pay interest for the extended period.
When a bill of exchange is dishonored, the holder can get such fact noted on the bill by a notary public. The advantages of noting is that the evidence of dishonored is secured. The noting is done by recording the fact of dishonored, the date of dishonor, the reason of dishonor, if any. For doing all this the notary
public charges his fees which is called noting charges.
In case the bill is renewed the interest will not be charged on the noting charges which will be treated separately and will not be clubbed with the amount of the bill.
Here Total amount of the Satyapal’s acceptance = 5,000
Amount of the renewed bill = Rs. 5,000
Interest for 1 months @12% pa = Rs. 5,000 × 12/100 × 1/12 = 50
Total amount of the renewed bill = 5,000 + 50 = Rs. 5,050

When the bill is payable at a stated number of days then the due date will be that day which comes after adding the specified number of days to the date of the bill plus 3 more days of grace. Note that here the date of bill is excluded.
The date of drawing the bill is 25th Jan
Add 45 days will give us 11th of March
Add 3 days of grace gives us 14th of March
Thus March 14th is the due date.

Sale will be presumed to have been made at time of delivery of goods and not production of goods or receipt of order.

Securities premium is not free for distribution as dividend. It can be used for all other purposes.