Question

Using infomation given below, what is the net balance left in Share Forfeiture Account?

Vinod Ltd. having authorised Capital ₹1,00,00,000 divided into equity shares of ₹100 each, invited applications for issuing 25,000 equity shares at par. The amount per share was payable as follows: On Application ₹20 per share, on Allotment ₹30 per share, on First call ₹25 per share and on second and final call ₹25 per share. Applications were received for 24,000 shares and the shares were allotted to all the applicants. All calls were made and were received as follows: On 18,000 shares Full amount On 2,000 shares ₹75 per share On 2,500 shares ₹50 per share On 1,500 shares ₹20 per share The company forfeited those shares on which less than ₹75 per share were received. The forfeited shares were reissued at ₹95 per share fully paid up.

Options

• ₹1,400

• ₹1,500

• ₹900

• ₹1,000

Answer 1

₹1,000

Explanation:

Calls received position
On 18,000 shares → Full ₹100
On 2,000 shares → ₹75
On 2,500 shares → ₹50
On 1,500 shares → ₹20
Forfeited shares = 2,500 + 1,500 = 4,000 shares

Money received on forfeited shares
2,500 shares × ₹50 = ₹1,25,000
1,500 shares × ₹20 = ₹30,000
Total = ₹1,55,000 credited to Share Forfeiture A/c

Reissue of forfeited shares
All 4,000 forfeited shares reissued at ₹95 fully paid up.
Face value = ₹100 → Discount on reissue = ₹5 per share.
For 4,000 shares → Discount = 4,000 × ₹5 = ₹20,000.

Balance in Share Forfeiture A/c

Total credited (Step 3)	₹1,55,000
Less: Used for discount on reissue	₹20,000
Net Balance left	₹1,35,000

Per Share balance

Leftover = ₹1,35,000 ÷ 4,000 shares = ₹33.75 per share

₹33.75 per share × 30 shares

=₹1,000