Question

Xyle Ltd. forfeited 700 shares of ₹ 10 each issued at a premium of 10% for non-payment of allotment money of ₹ 5 per share (including premium) and first and final call of ₹ 3 per share. On forfeiture of these shares, 'Share Forfeiture Account' will be credited with

Options

• ₹ 7,000.

• ₹ 1,400.

• ₹ 4,900.

• ₹ 2,100.

Answer 1

₹ 2,100.

Explanation:

Allotment of ₹ 5 includes premium of ₹ 1, so unpaid share capital on allotment = ₹ 4. First and final call unpaid = ₹ 3. Thus, amount received towards share capital per share:

₹ 10 − (₹ 4 + ₹ 3) = ₹ 3

Therefore:

700 × ₹ 3 = ₹ 2,100​