Question

Happy Garments Ltd. invited applications for issuing 1,00,000 shares of ₹10 each at a premium of ₹3 per share. The amount was payable as follows:

On Application	₹5 per share (including premium)
On Allotment	₹4
On First and Final Call	₹4

Applications were received for 1,50,000 shares. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. All calls were made and were duly received except allotment and first and final call from Vishesh who was allotted 300 shares. His shares were forfeited.
Amount Credited to Share Forfeiture Account will be:

पर्याय

• ₹2,100

• ₹1,200

• ₹1,500

• ₹600

Answer 1

₹1,200

Explanation:

Shares applied by Vishesh `= 300xx140000/100000 = 420`

Excess application money received = 420 Shares − 300 Shares

= 120 Shares × ₹5 = ₹600

	₹
Allotment money due from Vishesh = 300 × ₹4	1,200
Less: Excess received on application	(600)
Allotment money not received	600

Entry on Forfeiture

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c (300 × ₹10)     ...Dr.		3,000
	To Share Allotment A/c			600
	To Share First and Final Call A/c (300 × ₹4)			1,200
	To Share Forfeiture A/c			1,200