Question

Atul Ltd. invited applications for issuing 1,00,000 equity shares of ₹50 each at a premium of ₹10 per share. The amount was payable as follows:

On Application	₹15 per share (including ₹4 premium)
On Allotment	₹10 per share (including ₹2 premium)
On First Call	₹20 per share (including ₹3 premium)
On Second and Final Call	Balance Amount

Gopal, a shareholder holding 400 shares, did not pay the allotment and first call money and his shares were forfeited after first call.
Share Forfeiture Account will be Credited by:

पर्याय

• ₹12,000

• ₹6,000

• ₹1,600

• ₹4,400

Answer 1

₹4,400

Explanation:

Payment structure:

• Application = ₹15 (₹11 Capital + ₹4 Premium)

• Allotment = ₹10 (₹8 Capital + ₹2 Premium)

• First Call = ₹20 (₹17 Capital + ₹3 Premium)

• Second & Final Call = Balance = ₹15 (Capital only).

Default by Gopal

Allotment = ₹10/share ⇒ ₹4,000 (incl. ₹2 premium = ₹800)

First Call = ₹20/share ⇒ ₹8,000 (incl. ₹3 premium = ₹1,200)

Forfeiture treatment

Share Capital A/c Dr. with called-up Capital (till 1st Call) = 400 × (11 + 8 + 17) = 400 × 36 = ₹14,400

Securities Premium A/c Dr. with unpaid premium = ₹2,000

To Calls in Arrears A/c = 400 × (8 + 17) = 400 × 25 = ₹10,000

To Share Forfeiture A/c = Capital actually received = 400 × 11 = ₹4,400