Question

Elite Ltd. invited applications for issuing 2,00,000 shares of ₹50 each at a premium of ₹15 per share. The amount was payable as follows:

On Application	₹20 (including premium ₹10)
On Allotment	₹30 (including premium ₹5)
On First and Final Call	₹15

Applications were received for 3,00,000 shares and pro-rata allotment was made to all the applicants. All calls were made and were duly received except allotment and first and final call from Rashmi who applied for 600 shares. Her shares were forfeited.
Amount Credited to Share Forfeiture Account will be:

Options

• ₹12,000

• ₹8,000

• ₹6,000

• ₹10,000

Answer 1

₹8,000

Explanation:

Shares allotted to Rashmi `= 600xx200000/300000 = 400`

Excess application money received = 600 − 400 = 200 Shares × ₹20 = ₹4,000

Allotment money due from Rashmi = 400 × ₹30	12,000
Less: Excess received on application	(4,000)
Allotment money not received	8,000

Entry on Forfeiture:

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c (400 × ₹50)     ...Dr.		20,000
	Securities Premium A/c (400 × ₹5)     ...Dr.		2,000
	To Share Allotment A/c			8,000
	To Share First and Final Call A/c			6,000
	To Share Forfeiture A/c			8,000