Question

X Ltd. issued a prospectus inviting applications for 5,00,000 shares of ₹10 each at a premium of 14 per share, payable as follows: On Application ₹8 (including ₹5 premium) On Allotment ₹7 (including ₹4 premium) On First Call ₹5 (including ₹3 premium) On Second & Final Call Balance Amount A shareholder holding 800 shares failed to pay the allotment money and his shares were forfeited after allotment.

In the entry for forfeiture of shares, Share Capital Account will be debited with ______.

पर्याय

• ₹2,400

• ₹5,600

• ₹4,800

• ₹8,000

Answer 1

In the entry for forfeiture of shares, Share Capital Account will be debited with ₹4,800.

Explanation:

Share Capital Account is debited by Called up amount on shares (excluding premium):

On Application ₹3 + On Allotment ₹3

= ₹6

Called up amount on 800 shares = 800 × ₹6

= ₹4,800

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c (800 × ₹6)     ...Dr.		4,800
	Securities Premium A/c (800 × ₹4)     ...Dr.		3,200
	To Calls in Arrears A/c (800 × ₹7)			5,600
	To Share Forfeiture A/c			2,400