Company Accounts

Share Capital

Hard

Mona Ltd. has Rs. 5 crores capital divided into equity shares of Rs. 10 each. It decided to setup a new plant in Bihar. For this purpose the company issued 10,000 shares of Rs. 10 each at Rs. 11 per share. The money was payable as follows

Rs. 3 on application

Rs. 4 on allotment - (including premium)

Rs. 4 on first and final call

Applications were received for 12000 shares & the directors made pro-rata allotment Mr. Sharma an applicant for 120 shares could not pay the allotment and call money and Mr. Verma, a holder of 200 shares, failed to pay the call money. All these shares were forfeited out of the forfeited shares, 150 shares (the whole of Mr. Sharma's shares being included) were issued at Rs. 8 per share. Answer the following questions:-

The amount transferred to Capital Reserve would be

Rs. 260

Rs. 300

Rs. 360

Rs. 900

✅ Correct Option: 3

Forfeiture per Sharma's 100 shares (app money only received) = Rs. 360. Reissued at Rs. 8, discount = $100 \times 2 = 200$ . Capital Reserve from Sharma's shares = $360 - 200 = 160$ .

Forfeiture on Verma's 200 shares (paid up to allotment, excluding premium) = $200 \times 6 = 1{,}200$ . Reissued 50 of his shares. Forfeiture allocable = $\frac{50}{200} \times 1{,}200 = 300$ ; discount on reissue = $50 \times 2 = 100$ . Capital Reserve = $300 - 100 = 200$ .

Total Capital Reserve = $160 + 200 = 360$ .

Question 46

The amount received on allotment was

Question 48

The amount received on First and Final call is

Question 49

The amount of forfeiture left over after reissue will be

Question 50

At the time of forfeiture security premium reserve a/c will be debited for _______ shares.

The amount transferred to Capital Reserve would be

Solution

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