Question

X Ltd. issued shares of ₹100 each at a premium of ₹200 per share. Amounts were payable as follows:

On Application	₹80 (including premium ₹60)
On Allotment	₹100 (including premium ₹50)
On First and Final Call	Remaining amount

Mona, a holder of 100 shares failed to pay allotment and first & final call money and her shares were forfeited. On forfeiture, Calls in Arrears Account will be:

Options

• Debited with ₹8,000

• Credited with ₹8,000

• Credited with ₹22,000

• Debited with ₹22,000

Answer 1

Credited with ₹22,000

Explanation:

	₹
Amount not paid on allotment (100 × ₹100)	10,000
Amount not paid on First & Final Call (100 × ₹120)	12,000
	22,000