Question

12,000 shares of Rs 100 each forfeited due to nonpayment of allotment Rs 40 per share(excluding premium Rs 10 per share) and first & final call Rs 30 per share. what will be Calls-in Arrears Account?​

Answer 1

₹960000 will come in calls in arrears account.

Calls-in-arrears are the amount which unpaid by the shareholder on allotment and further calls ,even after intimidating by the company of non payment of shares due, finally the company forfeits the shares of such shareholders

Calculation of calls-in-arrears :-

Total amount of shares = 12000*100          = 1200000

payment on application @30 = 12000*30 = 360000

non payment on allotment and final call    = 840000

calls in arrears includes =

Non payment of allotment 40+10=₹50

non payment of final call             = ₹30

Total due                                        = ₹80

total amount to be paid = 12000*80 = ₹960000