Question : Alok Ltd. forfeited 300 Equity Shares of Rs. 10 each, fully called-up, held by Ram for non-payment of allotment money of Rs. 3 per equity share and first and final call money of Rs. 4 per equity share. Out of these, 250 shares were reissued to Shyam for a total payment of Rs. 2,000. What is the amount to be transferred to the Capital Reserve Account?
Option 1: Rs. 300
Option 2: Rs. 250
Option 3: Rs. 150
Option 4: Rs. 400
Correct Answer: Rs. 250
Solution :
Answer = Rs. 250
JOURNAL OF ALOK LTD.
Date
Particulars
L.F.
Dr.W
Cr. ( Rs.)
Share Capital A/c (300 x Rs. 10) ...Dr.
3,000
To Forfeited Shares A/c (300 x Rs. 3)
To Shares Allotment A/c (300 x Rs. 3)
To Shares First and Final Call A/c (300 x Rs. 4)
(300 shares forfeited for non-payment of allotment and first and final call)
900
1,200
Bank A/c (250 x Rs. 8) ...Dr.
Forfeited Shares A/c (250 x Rs. 2) ...Dr.
2,000
500
To Share Capital A/c (250 x Rs. 10)
(250 forfeited shares reissued for Rs. 8 per share)
2,500
Forfeited Shares A/c (250 x Rs. 1) ...Dr.
250
To Capital Reserve A/c (250 x Rs. 1) (Transfer of gain on reissue) (WN)
Question : Krishna Ltd. forfeited 2,000 shares of Rs. 20 each, fully called up, on which only application money of RS. 6 has been paid. Out of these 1,000 shares were reissued and Rs. 4,000 has been transferred to capital reserve. Calculate the rate at which these shares were reissued.
Option 1: Rs 20 per share
Option 2: Rs 18 per share
Option 3: Rs 22 per share
Option 4: Rs 8 per share
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 2: Rs. 120
Option 3: Rs. 350
Option 4: Rs. 450
Question : A Ltd. forfeited 600 Equity Shares of Rs. 10 each issued at a premium of 20% to Ram who had applied for 720 Equity Shares, for non-payment of allotment money of Rs. 5 per equity share
(including premium) and the first and final call of Rs. 5 per equity share. Out of these, 200 Equity Shares were reissued to Shyam credited as fully paid for Rs. 9 per equity share. As per the terms of the issue, the company was to retain the excess application money to adjust against calls.
The amount that will be transferred to the capital reserve will be:
Option 1: Rs. 200
Option 2: Rs. 480
Option 3: Rs. 280
Option 4: Rs. 1,440
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