Question

Prafful Limited forfeited 15,000 shares of ₹ 20 each on which ₹ 8 (including ₹ 2 premium) was paid. Out of these 13,000 shares were re-issued @ ₹ 19 per share as fully paid up. Determine the amount of Share Forfeited balance.

पर्याय

• ₹ 90,000

• ₹ 91,000

• ₹ 12,000

• ₹ 16,000

Answer 1

₹ 12,000

Explanation:

Amount paid = ₹ 8 per share, including ₹ 2 premium.

So capital received = ₹ 8 − ₹ 2

= ₹ 6 per share

Premium is not credited to Forfeited Shares A/c, hence not considered.

Total forfeited amount on 15,000 shares:

= 15,000 × 6

= ₹ 90,000

Amount to be transferred to Capital Reserve on re-issue:

13,000 shares reissued @ ₹ 19 fully paid.

Face value = ₹ 20

Reissue price = ₹ 19 → Discount = ₹ 1 per share

Forfeiture amount for reissued shares:

= 13,000 × 6

= ₹ 78,000

Discount on reissue:

= 13,000 × 1

= ₹ 13,000

Transfer to Capital Reserve:

= 78,000 − 13,000

= ₹ 65,000

Balance of Share Forfeiture A/c:

Total Forfeiture − Forfeiture used for reissue

= 90,000 − 78,000

= ₹ 12,000