Question

4. A company issued 60,000 shares of 10 each. The amount to be paid as: 4 on application, 2 on allotment, * 2 on first call and the remaining money on final call The called-up value per share was 8. The company forfeited 1,200 shares of Mr. X for non-payment of first call money. On forfeiture of shares the share capital account will be: only answer​

Answer 1

Answer:

Allotment Rs. 2,54,800, Capital Reserve Rs. 14,600. Bank Balance Rs. 8,52,800.

Hint : Premium of Rs. 4,800 due on A's shares will be debited in the entry of forfeiture.

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