Question

V.D. Ltd. invited applications for issuing 2,00,000 equity shares of ₹10 each at a premium of ₹6 per share. The amount per share was payable as follows: On applications ₹3 (including premium ₹1) On allotment ₹7 (including premium ₹5) On first and final call Balance amount Applications were received for 2,50,000 shares. Application money on 10,000 shares was returned. Shares were alloted to the remaining applicants on pro-rata basis. The company received all the money due on allotment except from Agam, who was allotted 1,000 shares. Her shares were forfeited immediately after allotment. Afterwards, the first and final call was made. Seema the holder of 2,000 shares, did not pay the first and final call on her shares. Her shares were also forfeited. 50% of the forfeited shares, each of Agam and Seema, were reissued as fully paid-up @₹16 per share.

You are requied to answer the following question:

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

विकल्प

• ₹2,600

• ₹6,400

• ₹2,000

• ₹8,600

Answer 1

In the entry on forfeiture of Agam,s shares, amount credited to Share Forfeiture Account will be ₹2,000.

Explanation:

She only paid the application money: 

1,000 shares × ₹3 = ₹3,000

But only ₹2 per share goes to capital (₹1 is premium)

₹2 × 1,000 = ₹2,000 contributed toward share capital

Premium ₹1 × 1,000 = ₹1,000 (but not credited since premium not received fully)

Allotment unpaid = ₹7 × 1,000 = ₹7,000

Includes ₹2 capital and ₹5 premium

So, premium not received, hence not credited

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c (₹4 × 1,000)     ...Dr.		4,000
	Securities Premium A/c (₹5 × 1,000)     ...Dr.		5,000
	To Share Allotment A/c			7,000
	To Share Forfeiture A/c			2,000
	(Being 1,000 shares forfeited for non-payment of allotment money)