Question

Attire Ltd. forfeited 60 shares of ₹ 100 each issued at 10% premium on which allotment money of ₹ 30 per share (including premium) and first call of ₹ 30 per share were not received and second and final call of ₹ 20 per share was not yet called. 20 of these were reissued as ₹ 80 paid-up for ₹ 70 per share. On reissue, the Share Capital Account will be ______.

पर्याय

• Debited with ₹ 1,600.

• Credited with ₹ 1,600.

• Credited with ₹ 2,000.

• Credited with ₹ 1,400.

Answer 1

Attire Ltd. forfeited 60 shares of ₹ 100 each issued at 10% premium on which allotment money of ₹ 30 per share (including premium) and first call of ₹ 30 per share were not received and second and final call of ₹ 20 per share was not yet called. 20 of these were reissued as ₹ 80 paid-up for ₹ 70 per share. On reissue, the Share Capital Account will be credited with ₹ 1,600.

Explanation:

20 shares were reissued as ₹ 80 paid-up. Share Capital is credited with the paid-up value of the shares.

20 × ₹ 80 = ₹ 1,600