Question

Godrej Ltd. invited applications for issuing 3,20,000 equity shares of ₹20 each at par. The amount was payable as follows:

On Applications	₹6 per share
On Allotment	₹7 per share
On First Call	₹4 per share
On Final Call	₹3 per share

Applications were received for 3,85,000 shares. Applications for 5,000 shares were rejected, full allotment was made to the applicants for 80,000 shares and pro-rata allotment was made to the remaining applicants. All calls were made and were duly received except first call and final call from Sandhya who applied for 5,000 shares and was allotted shares on pro-rata basis. Her shares were forfeited.
Amount Credited to Share Forfeiture Account will be:

Options

• ₹65,000

• ₹59,000

• ₹58,000

• ₹52,000

Answer 1

₹52,000

Explanation:

Scheme of Allotment:

	Shares Applied	Allotted
Rejected	5,000	Nil
Full Allotment	80,000	80,000
Pro-rata Allotment (3,85,000 − 5,000 − 80,000)	3,00,000	2,40,000
	3,85,000	3,20,000

Shares Allotted to Sandhya `= 5000xx240000/300000 = 4000`

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c (4,000 × ₹20)     ...Dr.		80,000
	To Share First Call (4,000 × ₹4)			16,000
	To Share Final Call (4,000 × ₹3)			12,000
	To Share Forfeiture A/c			52,000