Question : ABC Ltd. forfeited 150 Equity Shares of Rs. 10 each issued at a premium of Rs. 5 per share, for non-payment of allotment money of Rs. 8 per share (including premium of Rs. 5 per share), the first call of Rs. 2 per share and the final call of Rs. 3 per share. Out of these, 100 Equity Shares were reissued at Rs. 14 per share.
Question:- Share Forfeiture Account will be credited by _________.
Option 1: Rs. 300
Option 2: Rs. 120
Option 3: Rs. 350
Option 4: Rs. 450
Correct Answer: Rs. 300
Solution : Answer = Rs. 300
Share Capital A/c (150 x Rs. 10) ...Dr.
1,500
Securities Premium Reserve A/c (150 x Rs. 5) ...Dr.
750
To Forfeited Shares A/c (150 x Rs. 2)
300
To Shares Allotment A/c (150 x Rs. 8)
1,200
To Shares First Call A/c (150 x Rs. 2)
To Shares Second and Final Call A/c (150 x Rs. 3)
(150 shares forfeited for non-payment of allotment and both the calls)
450
Bank A/c (100 x Rs. 14) ...Dr.
1,400
To Share Capital A/c (100 xT 10)
1,000
To Securities Premium Reserve A/c (100 x Rs. 4)
(Reissue of 100 of the forfeited shares @ Rs.14 per share)
400
Forfeited Shares A/c ...Dr.
To Capital Reserve A/c
(Gain on reissue of 100 shares transferred to Capital Reserve)
200
Question:- At the time of re-issue Securities Premium Account is credited by
Option 1: Rs. 200
Option 2: Rs. 400
Option 3: Rs. 150
Option 4: None of these
Question :
ABC Ltd. forfeited 150 Equity Shares of Rs. 10 each issued at a premium of Rs. 5 per share, for non-payment of allotment money of Rs. 8 per share (including premium of Rs. 5 per share), the first call of Rs. 2 per share and the final call of Rs. 3 per share. Out of these, 100 Equity Shares were reissued at Rs. 14 per share.
Question:- What is the amount transferred to the Capital Reserve Account?
Option 2: Rs. 200
Option 3: Rs. 700
Option 4: Nil
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile