Question

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

On Application	₹2
On Allotment	₹4
On First and Final Call	₹4

Applications were received for 2,50,000 shares. Applications for 50,000 shares were made full allotment; 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 allotment and first and final call from Jiya who was allotted 300 shares under pro-rata category. Her shares were forfeited.

Amount Credited to Share Forfeiture Account will be:

Options

• ₹600

• ₹760

• ₹160

• ₹1,040

Answer 1

₹760

Explanation:

Scheme of Allotment:

	Shares Applied	Allotted
Full Allotment	50,000	50,000
Rejected	10,000	Nil
Pro-rata Allotment (2,50,000 − 50,000 − 10,000)	1,90,000	1,50,000
	2,50,000	2,00,000

Shares applied by Jiya = `300xx190000/150000 = 380`

Jiya has paid only application money @ ₹2 per share. Hence, amount Credited to Share Forfeiture Account will be 380 × ₹2

= ₹760