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Question
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Johri Ltd. was formed with an authorised capital of ₹10,00,000 divided into shares of ₹20 each. It offered 40,000 shares to the public for subscription at a premium of ₹10 per share. Applications were received for 37,000 shares and allotment was made to all applicants. Amounts were payable as follows:
It forfeited 3,000 shares of ₹20 each (₹16 called up) held by Mansi, for non-payment of allotment and the first call. Out of these, 2,000 shares were reissued to Sudha as ₹16 called up for ₹14 per share. Second and final call was not made by the Company. |
Balance of Share Forfeiture Account will be ______.
Options
₹14,000
₹18,000
₹6,000
₹10,000
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Solution
Balance of Share Forfeiture Account will be ₹6,000.
Explanation:
2,000 shares reissued at ₹14 (₹16 called up) → Discount = ₹2/share
Discount on reissue = ₹2 × 2,000 = ₹4,000 (debited from Share Forfeiture A/c)
₹6 × 2,000 = ₹12,000 received
₹12,000 – ₹4,000 = ₹8,000
Balance of Share Forfeiture A/c = ₹6 × 1,000
= ₹6,000
