Question

123.A Ltd. forfeited 2,000 shares of 310 each fully called up for non-payment of final call of 2 per share. 1,200 of these shares were reissued at 7 per share, fully paid up. What is the net balance left in share forfeiture account
a) 1,400
b). 1,500
c). 900
d). 1000​​

Answer 1

Answer:

Rs. 10,000

Explanation:

Note: I assume it is Rs. 10 each; not 310 each. And that there is some mistake in scanning the question through OCR.

No of. shares forfeited = 2000

Amount called up by the company = Rs. 10 each = Rs. 20,000

Amount not received = Rs. 2 * 2000 = Rs. 4,000

And amount received = 20,000 - 4,000 = Rs. 16,000

The balance in share forfeited account is Rs. 16,000 because 16,000 has been received but those shares are not forfeited and so, the Rs. 16,000 is a capital gain for the company.

Now, 1200 of 2000 shares were reissued.

So, first we calculate the gain per share on 2000 shares.

That is Amount received/No. of shares forfeited = 16,000/2,000 = Rs. 8 per share gain.

Then we multiply the gain per share by no. of shares reissued ie Rs. 8 * 1200 = Rs. 9600.

To calculate the amount transferred to capital reserve, we subtract the gain on 1200 shares, ie Rs. 9600 and the amount of discount provided.

Face value of each share = Rs. 10

Reissue price per share = Rs. 7

Therefore, discount per share on reissued share = Rs. 10 - 7 = Rs. 3

⇒ Amount transferred to capital reserve = Rs. 9,600 - (3*1200)

= 9600 - 3600

= Rs. 6,000

Now, Rs. 6,000 is transferred to capital reserve from the share forfeited account, so the balance left in share forfeited account is initial balance - amount transferred

= Rs. 16,000 - Rs. 6,000

= Rs. 10,000

Answer 2

Answer:

option D is correct 10,000

Explanation:

given :

• LTD forfeited = 2,000

• share = 310

• final call = 2 per share

• 1,200 of these shares were reissued

• at 7 per share

to find :

• What is the net balance left in share forfeiture account = ?

solution :

loss number share = 2000

quantity of something = 10 × 2000 = 20,000

• quantity of something not accept = 2× 2,000 = 4,000

• quantity of something not accept = 20,000 - 4,000 = 16,000

• share not accept = rs 16,000 is a gain

first we doing the 2000 share solving

• quantity something accepted / share

• loss = 16,000/2,000 = 8 share

• then, we will multiply the gain of share different

• product = 8× 1200 = rs 9600

• then , we solving quantity something to

• accepted we will minus it 1200 and 9600

accept share = 10

different product share = 7

deduct the quantity = 10 -7 = 3

• quantity another place to accept

• = 9,600 - (3× 1200)

subtract 9,600 with 3,600 we get

• = 6,000

comparing share loss

• again we will subtract 16,000 with 6,000

we get

• 10,000

comparing share loss = 10,000