Question

Johri Ltd. was formed with an authorised capital of ₹10,00,000 divided into shares of ₹20 each. It offered 40,000 shares to the public for subscription at a premium of ₹10 per share. Applications were received for 37,000 shares and allotment was made to all applicants. Amounts were payable as follows: On Application ₹6 On Allotment ₹15 On 1st Call ₹5 On 2nd & Final Call Balance It forfeited 3,000 shares of ₹20 each (₹16 called up) held by Mansi, for non-payment of allotment and the first call. Out of these, 2,000 shares were reissued to Sudha as ₹16 called up for ₹14 per share. Second and final call was not made by the Company.

Balance of Share Forfeiture Account will be ______.

पर्याय

• ₹14,000

• ₹18,000

• ₹6,000

• ₹10,000

Answer 1

Balance of Share Forfeiture Account will be ₹6,000.

Explanation:

2,000 shares reissued at ₹14 (₹16 called up) → Discount = ₹2/share

Discount on reissue = ₹2 × 2,000 = ₹4,000 (debited from Share Forfeiture A/c)

₹6 × 2,000 = ₹12,000 received

₹12,000 – ₹4,000 = ₹8,000 

Balance of Share Forfeiture A/c = ₹6 × 1,000

= ₹6,000