Question

X Ltd. issued a prospectus inviting applications for 10,000 shares of ₹50 each at a premium of ₹20 per share, payable as follows:

On Application	₹10 (including ₹4 premium)
On Allotment	₹20 (including ₹5 premium)
On First Call	₹30 (including ₹6 premium)
On Second & Final Call	Balance Amount

A shareholder holding 1,000 shares failed to pay the first call and second & final call money and his shares were forfeited after the final call.
In the entry for forfeiture of shares, Share Capital Account will be debited with:

विकल्प

• ₹29,000

• ₹50,000

• ₹70,000

• ₹11,000

Answer 1

₹50,000

Explanation:

Share Capital Account will be debited by Called-up amount (excluding premium). Since all Calls have been made Share Capital Account will be debited by:

1,000 Shares × ₹50

= ₹50,000