Question

X Ltd. invited applications for issuing 2,00,000 shares of ₹100 each at a premium of ₹20 per share. The amount was payable as follows:

On Application	₹30 (including premium)
On Allotment	₹50
On First and Final Call	₹40

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 Tina who had applied for 2,400 shares. Her shares were forfeited.
Amount Credited to Share Forfeited Account will be:

Options

• ₹72,000

• ₹48,000

• ₹40,000

• ₹16,000

Answer 1

₹40,000

Explanation:

Shares Allotted to Tina = `2400xx200000/300000 = 1600`

Excess Application money received from Tina:

2,400 Shares − 1,600 Shares = 800 Shares × ₹30 = ₹24,000

	₹
Allotment money due from Tina = 1,600 × ₹50	80,000
Less: Excess received on application	24,000
Allotment money not received	56,000

Entry for Forfeiture:

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
1.	Share Capital A/c (1,600 × ₹100)     ...Dr.		1,60,000
	To Share Allotment A/c			56,000
	To Share First and Final Call A/c			64,000
	To Share Forfeiture A/c			40,000