Question

Pali Limited offered 2,00,000 shares of ₹ 10 each at a premium of ₹ 2 per share. Applications were received for 1,95,000 shares, which were duly allotted. The amount was payable as ₹ 3 on Application (including ₹ 1 premium), ₹ 6 on Allotment (including ₹ 1 premium) and balance on call. Manoj, holding 6,000 shares failed to pay allotment money and his shares were immediately forfeited. Out of the forfeited shares, 4,000 shares were re-issued @ ₹ 11 per share as fully paid up. The amount of Capital Reserve will be:

विकल्प

• ₹ 16,000

• ₹ 12,000

• ₹ 8,000

• ₹ 18,000

Answer 1

₹ 8,000

Explanation:

Money received before forfeiture:

Application money = ₹ 3 (including ₹ 1 premium)

So capital received on application = ₹ 2

Allotment not paid ⇒ no capital received on allotment

Therefore, forfeited amount per share = ₹ 2

Total forfeited amount for 6,000 shares:

= 6,000 × 2

= ₹ 12,000

Proportionate forfeited amount:

= 4,000 × 2

= ₹ 8,000