Question

X ltd forfieted 500 share of RS. 100 each Rs. 75 called up issued at 10% premium to be paid at time of allotment forfeited non-payment of a first call of 30 per share out of these 200 share were he issued as 75 paid up for 60 per share​

Answer 1

Answer:

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

ForfeitureAmount=ApplicationAmount

Substitute the values in above equation

ForfeitureAmount=Rs30

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=50shares×Rs30=Rs1,500

ForfeitureAmountfor20shares=20shares×Rs30=Rs600.

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

Profitonreissue=ForfeitedAmountonforfeiture

Substitute the values in the above equation

Profitonreissue=Rs600−Rs0=Rs600

Hence, the profit earned on the reissue of shares is Rs 600.

Hope it's helpful dear

Answer 2

Rs 600 is the correct answer................