Question

X Ltd. forfeited 400 shares of ₹10 each issued at a premium of 40% to Kiran who had applied for 480 shares. After having paid ₹6 (including ₹2 premium) on application, she did not pay allotment and first and final call. The amount to be Credited to ‘Forfeited Shares Account’ will be:

Options

• ₹2,080

• ₹2,880

• ₹1,920

• ₹1,600

Answer 1

₹2,080

Explanation:

	₹
Amount received on application: 480 × 6	2,880
Less: Credited to Securities Premium: 400 × ₹2	800
Credited to ‘Forfeited Shares Account’	2,080