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: On Application ₹8 (including ₹5 premium) On Allotment ₹7 (including ₹4 premium) On First Call ₹5 (including ₹3 premium) On Second & Final Call Balance Amount A shareholder holding 800 shares failed to pay the allotment money and his shares were forfeited after allotment.

Securities Premium Reserve A/c will be debited by ______

Options

• ₹7,200

• ₹4,000

• ₹3,200

• ₹11,200

Answer 1

Securities Premium Reserve A/c will be debited by ₹3,200.

Explanation:

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