Question

Z Ltd. invited applications for issuing 3,00,000 equity shares of ₹20 each at a premium of ₹30 per share. The amount was payable as follows: On Application ₹10 per share (including ₹6 premium) On Allotment ₹13 per share (including ₹7 premium) On First Call ₹13 per share (including ₹8 premium) On Second and Final Call Balance Amount Vishakha, a shareholder holding 500 shares, did not pay the allotment and first call money and her shares were forfeited after first call.

Calls in Arrears Account will be Credited by ______.

Options

• ₹5,500

• ₹20,000

• ₹13,000

• ₹8,000

Answer 1

Calls in Arrears Account will be Credited by ₹13,000.

Explanation:

Amount not paid on allotment (including premium) = ₹13

Amount not paid on first call (including premium) = ₹13

= ₹26

Calls in Arrears = 500 Shares × ₹26

= ₹13,000

Entry on Forfeiture:
Share Capital A/c     ...Dr.	7,500
Securities Premium A/c     ...Dr.	7,500
To Calls in Arrears A/c		13,000
To Share Forfeiture A/c		2,000