Question

On 1st April
, 2020 Krishna Limited was formed with an Authorised capital of 5,00,000
divided into 50,000 equity shares of 10 each. The company invited application for 38.000
equity shares and received application for 35,000 equity shares. All the amount due on
allotment and first and final call received except a shareholder Suresh (to whom 1,000 shares
were allotted) did not pay the first and final call of 2 per share. Suresh's shares were
forfeited after the first and final call and out of his forfeited shares 700 shares be issued at 8
per fully paid up.
Share capital to be shown in the balance sheet is:
a) 3,49,400
b) 3,52,400 c) 3,47,600
d) 3,44,600

Answer 1

Answer:

Subscribed and fully paid up capital

34700*10= 347000

+ share forfeiture=

300*8. = 2400

=. 349400

option A is correct