Question

Super Star Ltd. issued 10,000 equity shares of ₹ 100 each at a premium of 20%. Mamta, who has been allotted 2,000 shares did not pay first and final call of ₹ 5 per share. On forfeiture of Mamta's shares, amount debited to Securities Premium Account will be

Options

• ₹ 5,000.

• ₹ 10,000.

• ₹ 15,000.

• NIL.

Answer 1

NIL.

Short Explanation:

Securities Premium A/c is debited on forfeiture only when the premium has not been received. Mamta failed to pay only the first and final call of ₹ 5 per share. Therefore, Securities Premium A/c will not be debited.