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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:-  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


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Rs. 400


Solution : Answer = Rs. 400 

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)

 

300

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

 

200


 

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