Question

MIG Ltd. forfeited 40 shares of ₹ 10 each issued at a premium of 40% to Raj who had applied for 48 shares. After having paid ₹ 6 (including ₹ 2 premium), he did not pay allotment money of ₹ 2 (including ₹ 1 premium) and on his subsequent failure to pay the first call of ₹ 3 (including ₹ 1 premium) his shares were forfeited. The amount to be credited to Forfeited Shares Account is

Options

• ₹ 288.

• ₹ 200.

• ₹ 192.

• ₹ 160.

Answer 1

₹ 200.

Explanation:

1. Total Money Received:

48 applied shares × 36 = ₹ 882. 

2. Total Securities Premium Received:

• On Application: 40 allotted shares × ₹2 = ₹80. 
• On Allotment (from excess application money): ₹8 (since excess ₹ 48 covers ₹ 40 allotment face value, leaving ₹ 8 for premium)
• Total Premium Received: ₹80 + ₹ 8 = ₹ 88. 

3. Amount Credited to Forfeited Shares Account:

Total Money Received − Total Premium Received = ₹288 − ₹88 = ₹200.