Accountancy, asked by yakshitsinghvi, 23 hours ago

Daisy Limited forfeited 200 shares 1 10 each who had applied for 500 shares, issued at a premium of 10% for non-payment of final call of 1 3 per share. Out of these, 100 shares were issued as fully paid up for rupees 15. The profit on reissue is:

Answers

Answered by yyygggo
0

Answer:

Forfeiture amount per share is the amount to be received by the company on forfeiture of each share.

ForfeitureAmount=ApplicationAmount+AllotmentAmount

Substitute the values in above equation

ForfeitureAmount=Rs10

Forfeiture amount is the money received by company on forfeiture (cancellation of share) or on the reissue of share.

ForfeitureAmount=No.ofshares×ForfeitureAmount

Substitute the values in the above equation

ForfeitureAmount=200shares×Rs10=Rs2,000

ForfeitureAmountfor80shares=80shares×Rs10=Rs800

ForfeitureAmountonreissue=80shares×Rs5=Rs400

Profit on the reissue is the profit earned by the company when the forfeited shares are reissued

Profitonreissue=ForfeitedAmountonforfeiture−ForfeitedAmountonReissue

Substitute the values in the above equation

Profitonreissue=Rs800−Rs400=Rs400

Hence, the profit earned on the reissue of shares is Rs 400.

Share forfeiture a/c Dr. Rs400

To share capital a/c Rs400.

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