Question

Nandi Toys invited applications for issuing 2,00,000 shares of ₹10 each at par. The amount was payable as follows:

On Application	₹4
On Allotment	₹3
On First and Final Call	₹3

Applications were received for 2,40,000 shares. Applications for 10,000 shares were rejected and pro-rata allotment was made to the remaining applicants. All calls were made and were duly received except first and final call from a shareholder who applied for 6,900 shares and was allotted shares on pro-rata basis. His shares were forfeited.
Amount Credited to Share Forfeiture Account will be:

Options

• ₹48,300

• ₹42,000

• ₹45,600

• ₹38,400

Answer 1

₹42,000

Explanation:

Shares Allotted to the defaulting shareholder: `6900xx200000/230000=6000`

Entry on Forfeiture:

Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Share Capital A/c (6,000 × ₹10)		60,000
	To First and Final Call A/c (6,000 × ₹3)			18,000
	To Share Forfeiture A/c			42,000