Company Accounts

Share Capital

Hard

Based on following passage answer questions from 41-45.

A Ltd with an Authorised Capital of Rs. 10,00,000 is divided into shares of Rs. 10 each, issued 50,000 shares at a premium of Rs. 2 per share payable as follows

on Application Rs. 3 per share

on Allotment Rs. 5 per share (including premium)

on First and Final call Balance amount

Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at Rs. 8 per share as fully paid up.

Select the amount that is received from Hari's reissued shares -

Rs. 4,800

Rs. 4,000

Rs. 8,000

Rs. 9,600

✅ Correct Option: 2

Answer: Rs. 4,000

Step 1: Shares allotted to Hari

Applications were received for 60,000 shares and 50,000 were allotted, so the ratio is 60,000 : 50,000 = 6 : 5.

Hari applied for 1,200 shares, so he was allotted:

1,200 × 5/6 = 1,000 shares

Step 2: Shares reissued

All 1,000 of his shares were forfeited, and half were reissued:

1,000 × 1/2 = 500 shares

Step 3: Amount received on reissue

500 shares × Rs. 8 = Rs. 4,000

Question 41

Identify the number of shares with which A ltd is registered.

Question 42

Select the amount received on Share Allotment Account -

Question 44

Identify the account to which the discount allowed on reissue of forfeited shares should be debited.

Question 45

The balance, if any, left in the share forfeited account relating to reissued shares, should be transferred to _______

Select the amount that is received from Hari's reissued shares -

Solution

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