Question

India Ltd. invited applications for issuing 3,00,000 equity shares of ₹10 each at a premium of ₹30 per share. The amount was payable as follows: On Applications ₹7 per share (including ₹5 premium) On Allotment ₹10 per share (including ₹7 premium) On First Call ₹11 per share (including ₹8 premium) On Second and Final Call Balance Amount A shareholder holding 2,000 shares did not pay the first call and second and final call money and his shares were forfeited after the final call.

Share Forfeiture Account will be Credited by ______.

Options

• ₹34,000

• ₹10,000

• ₹24,000

• ₹14,000

Answer 1

Share Forfeiture Account will be Credited by ₹10,000.

Explanation:

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c     ...Dr.		20,000
	Securities Premium A/c     ...Dr.		36,000
	To Calls in Arrears A/c			46,000
	To Share Forfeiture A/c			10,000