Question

Royal Ltd. invited applications for issuing 2,00,000 equity shares of ₹10 each at a premium of 25% payable with application. Applications for 4,50,000 shares were received. Applications for 1,00,000 shares were rejected and money refunded. Pro-rata allotment was made to the remianing applicants. The amount per share was payable as follows: On Application ₹4 per share including premium On Allotment ₹3.50 per share Raghu, who had applied for 7,000 shares failed to pay allotment money. His shares were forfeited immediately after allotment. Afterwards the first and final call was made. Nandan, who had applied for 10,500 shares, failed to pay the first and final call. His shares were also forfeited. Out of the forfeited shares, 7,000 shares were reissued as fully paid up for ₹9 per share including whole of Nandan's shares.

Based on the above information, you are required to answer the following question:

In the entry of forfeiture of Raghu's shares, amount credited to Share Forfeiture Account will be ______.

विकल्प

• ₹28,000

• ₹38,000

• ₹18,000

• ₹12,000

Answer 1

In the entry of forfeiture of Raghu's shares, amount credited to Share Forfeiture Account will be ₹18,000.

Explanation:

Entry on Forfeiture of Raghu's shares:

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Equity Share Capital A/c     ...Dr.		20,000
	To Calls in Arrears A/c			2,000
	To Share Forfeited A/c			18,000
	(Raghu's 4,000 shares forfeited)