Question

Vaidya Plastics Limited issued 20,000 shares of Rs. 100 each at a premium of Rs. 10 per
share. The share amount was payable as follows:
On Application : Rs. 20. On Allotment : Rs. 40 (Including Premium).
On First Call : Rs. 25. On Final Call : Rs. 25.
Applications were received for 15,000 shares and all these applicants were allotted
shares. The directors made all the calls on shares. The first call money was not received on
1,000 shares and the second call money on 500 shares. The directors forfeited the shares on
which the first call was not paid. Of the forfeited shares, 500 shares were re-issued as fully
paid at Rs. 70 per share,​

Answer 1

Answer:

Step by step solution by experts to help you in doubt clearance & scoring excellent marks in exams.

Step-by-step explanation:

solution is

Reserve A/c Rs. 1,90,000, Balance of Share Forfeiture A/c Rs. 15,000, Capital Reserve Rs. 6,000.

Hint : Expenses of issue have been written off against Securities Premium Reserve A/c.