Accountancy, asked by sree123sree, 5 months ago

X Ltd forfeited 10 shares of Rs 10 each, Rs 8 called, for the non payment of Rs 1 first call and Rs second call. These shares were reissued at Rs 8 per share. Pass necessary entries.

Answers

Answered by sayali60
3

ANSWER

HEY MATE , THATS YOUR ANSWER.

Explanation:

Forfeiture amount per share is the amount to be received by the company on forfeiture of each share.

ForfeitureAmount=ApplicationAmount+AllotmentAmount

Substitute the values in above equation

ForfeitureAmount=Rs5

Forfeiture amount is the money received by company on forfeiture (cancellation of share) or on the reissue of share.

ForfeitureAmount=No.ofshares×ForfeitureAmount 

Substitute the values in the above equation

ForfeitureAmount=100shares×Rs5=Rs500

ForfeitureAmountfor70shares=70shares×Rs5=Rs350

ForfeitureAmountonreissue=7shares×Rs0=Rs0

 Profit on the reissue is the profit earned by the company when the forfeited shares are reissued

Profitonreissue=ForfeitedAmountonforfeiture−ForfeitedAmountonReissue

Substitute the values in the above equation

Profitonreissue=Rs350−Rs0=Rs350

Hence,  the profit earned on the reissue of shares is Rs 350.

MARK AS BRAINLIEST

Similar questions