Question

Nidiya limited was incorporated on 1st April 2021 with registered office in Mumbal. The capital clause of memorandum of Association reflected a registered capital of 8,00,000 equity shares of Rs10 each and 1,00,000 preference shares of 50 each. Since some large investments were required for building and machinery the company in consultation with vendors, M/s VPS Enterprises, issued 1,00,000 equity shares and 20,000 preference shares at par to them in full consideration of assets acquired. Besides this the company issued 2,00,000 equity shares for cash at par payable as 3 on application, 2 on allotment, 33 on first call and 2 on second call. Till date second call has not yet been made and all the shareholders have paid except Mr. Ajay, who did not pay allotment and calls on his 300 shares and Mr. Vipul, who did nor pay first call on his 200 shares. Shares of Mr. Ajay were forfeited and out of these 100 shares were reissued at $12 per share. Q.37 What is the amount of Securities Premium Reserve that will be reflected in the balance sheet at the end of the year? (a) 200 (b) 600 (c) 7400 (d) 1,000 Q.38 What amount of share forfeiture would be reflected in the balance sheet? (a) 600 (b) 900 (c) 200 (d) 300
Please Explain the question too​

Answer 1

Answer:

Q.37- 400

Q.38- 600

Explanation:

Q.37- Premium = 100×4= 400

Q.38- Amount of forfeiture credited = 300×3=₹900

Amount transferred to Capital Reserve = 900×100/300 = (₹300)

Amount transferred to balance sheet 900-300 = ₹600

Answer 2

We are provided with certain accounting details of Nidiya Limited and we are required to choose the options given for the two questions are answer them.

The answer to the first question is (c) $Rs.400$

The answer to the second question is (a) $Rs.600$

Working Notes:

Call amount $= Rs.8$

Reissue amount $= Rs.12$

Premium $= Rs.12 - Rs.8 = Rs.4$

Number of shares issued $= 100$

Security premium $= 100$ ×$4 = Rs.400$

Amount of share forfeiture in Balance  Sheet

Number of shares forfeited $= 200$

Amount of forfeiture $= 200$ × $3$

                                  = Rs.$600$

Therefore, the Amount of security premium  $(c) Rs.400$ and the amount of forfeiture is $(a) Rs.600$ respectively.

PROJECT CODE: #SPJ3