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.

Share Capital Account will be debited by ______.

Options

• ₹5,500

• ₹10,000

• ₹7,500

• ₹13,000

Answer 1

Share Capital Account will be debited by ₹7,500.

Explanation:

Total Capital per Share = ₹20

Payment structure (Capital part only):

Application: ₹4 (₹10 total – ₹6 premium)

Allotment: ₹6 (₹13 – ₹7 premium)

First Call: ₹5 (₹13 – ₹8 premium)

Second & Final Call: ₹5 (Not yet called)

capital called up till now = ₹4 + ₹6 + ₹5 = ₹15 per share

Share Capital A/c will be debited with = 500 × ₹15

= ₹7,500