Question

A company forfeited 3,000 shares of 210 each, issued at premium of 10 per share, due to non payment of allotment money. Amount was payable as 10 (including premium *5) on application an he balance on allotment. 1,000 of these shares were re-issued as fully paid up for 8 per Share Vhat is the balance of 'Share Forfeited Alc' after re-issue? (a) 30,000 (b) 15,000 (c) 313,000 > (d) 10,000 2 ​

Answer 1

Answer:

Correct option is

B

Equity share final call A/c Dr. 2500

To Equity share capital 2500

(Being final call due)

Equity share capital A/c Dr. 10,000

To calls in arrear 2500

To share forfeiture 7500

(being shares forfeited)

Bank A/c Dr 4900

Share Forfeiture A/c Dr 2100

To Equity share capital 7000

(Being 700 shares re-issued)

Share forfeiture A/c 3150

To Capital Reserve 3150

(Being balance on 700 shares in share forfeiture account transferred to capital reserve)

Notes:- Balance in share forfeiture A/c = 7500

Amount for 700 shares = 7500/1000*700 = 5250

Less: Amount Utilised = (2100)

Balance left 3150