Question

X Ltd. invited applications for issuing 2,40,000 equity shares of ₹10 each at a premium of ₹4 per share. The amount was payable as under: On application ₹4 per share (including premium ₹2) On allotment ₹4 per share On first and final call Balance Amount Applications for 3,00,000 shares were received and pro-rata allotment was made to all the applicants. All calls were made and were duly received except from Rohini, who failed to pay allotment and first and final call on 7,500 shares applied by her. These shares were forfeited. Afterwards, 40% of the forfeited shares were re-issued at ₹11 per share as fully paid-up.

On the basis of above information, you are required to answer the following question:

Balance in Securities Premium Reserve Account will be ______.

पर्याय

• ₹9,60,000

• ₹9,48,000

• ₹9,62 400

• ₹9,50,400

Answer 1

Balance in Securities Premium Reserve Account will be ₹9,50,400.

Explanation:

Total Securities Premium: 2,40,000 × ₹4	9,60,000
Less: Debited in Forfeiture entry	12,000
	9,48,000
Add: Credited in Reissue entry	2,400
	9,50,400