Question

S.
A share of Rs. 100 issued at a premium of 20% is forfeited due to non-payment of
final call of Rs. 30. The amount transferred to share forfeiture A/c on forfeiture of
share is
(a) Rs. 90 (6) Rs. 50 (c) Rs. 30
Rs. 70​

Answer 1

Answer:

70

Explanation:

The premium amount must have been paid on allotment time so it remains credited to the securities premium account.

Here, 30 rupees out of 100 has not been paid, or only 70 has been paid plus 20 for premium.

In forfeiture account this 70 is transferred. 20 remains in securities premium.