Question

Ruby limited invited applications for 1,00,000 shares of ₹10 each at a premium of 30% payable as follows: On Application ₹4 On Allotment ₹5 On First Call ₹2 On Second and Final Call ₹2 The public subscribed for two times the shares that were offered by the company. The directors decided to allot the shares to all the applicants on a pro-rata basis. Santosh who had applied for 6,000 shares, did not pay anything after the Application. Her shares were forfeited after the final call. 50% of the forfeited shares were reissued to Ashok as fully paid in such a manner that ₹1,500 were transferred to Capital Reserve A/c.

When Santosh's share were forfeited, what amount was transferred to ‘Share Forfeited A/c’?

पर्याय

• ₹24,000

• ₹21,000

• ₹20,000

• ₹18,000

Answer 1

₹18,000

Explanation:

Application paid = 6,000 × ₹4 = ₹24,000

Out of this, required for 3,000 shares = 3,000 × ₹4 = ₹12,000

First Call (₹2 per share) = 3,000 × 2 = ₹6,000 (unpaid).

Final Call (₹2 per share) = 3,000 × 2 = ₹6,000 (unpaid).

Application (capital portion) = 3,000 × ₹1 = ₹3,000

₹15,000 – ₹9,000 premium = ₹6,000

Capital received = ₹9,000

Forfeiture entry

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c (3,000 × ₹10)     ...Dr.		30,000
	Securities Premium A/c     ...Dr.		3,000
	To Calls in Arrear A/c (6,000 + 6,000)			12,000
	To Share Forfeiture A/c			18,000