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Question
|
X Ltd. issued a prospectus inviting applications for 5,00,000 shares of ₹10 each at a premium of 14 per share, payable as follows:
A shareholder holding 800 shares failed to pay the allotment money and his shares were forfeited after allotment. |
In the entry for forfeiture of shares, Share Capital Account will be debited with ______.
Options
₹2,400
₹5,600
₹4,800
₹8,000
MCQ
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Solution
In the entry for forfeiture of shares, Share Capital Account will be debited with ₹4,800.
Explanation:
Share Capital Account is debited by Called up amount on shares (excluding premium):
On Application ₹3 + On Allotment ₹3
= ₹6
Called up amount on 800 shares = 800 × ₹6
= ₹4,800
| Date | Particulars | L.F. | Debit (₹) | Credit (₹) |
| 1. | Share Capital A/c (800 × ₹6) ...Dr. | 4,800 | ||
| Securities Premium A/c (800 × ₹4) ...Dr. | 3,200 | |||
| To Calls in Arrears A/c (800 × ₹7) | 5,600 | |||
| To Share Forfeiture A/c | 2,400 |
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