Ranvijay Ltd, invited applications for issuing 1,00,000 shares of ? 10 each at a premium of 2 per share. Amount per share was payable as follows: On Application * 4 (including premium) On Allotment * 4 (including premium * 1) On First and Final Call Balance. Applications were received for 1,50,000 shares and allotment was made to the applicants as follows: (i) Applicants of 80,000 shares were allotted 60,000 shares. (ii) Applicants of 50,000 shares were allotted 40,000 shares. (iii) No shares were allotted to the remaining applicants and their application money was returned. Yuvraj, who belonged to category (ii) and who had applied for 5,000 shares failed to pay the allotment and call money. His shares were forfeited. Later, half of Yuvraj's forfeited shares were reissued @ * 18 per share as fully paid up.
State the amount received at the time of reissue of forfeited shares. (a) * 20,000 (b) 16,000 (c) 36,000 (d) 30,000
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"20000"
Explanation:
Total amount of per share = 10
Premium Included = 2
Application = 4(including premium)
Allotment = 4(including premium)
First and Final call = 4
Failed shares = 5000
Reissued shares = 5000 / 2 = 2500
Entry of Forfeiture of Shares is,
Share Allotment a/c dr 15000
Share First And Final Call a/c dr 20000
Securities Premium a/c dr 5000
To Share Forfeiture a/c 40000
Therefore, Reissued share = 2500 x 8 = 20000
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