A share of Rs.10. Issued at a premium of Rs.3. On which Rs.3 was payable on application and Rs.5 was payable on allotment including premium. A shareholder who had applied for 100 shares was Allotted Only 50 Shares and due to non payment of allotment his shares were forfeited. In this case the amount to be debited to securities premium A/c on forfeiture of these shares are

Share Structure:

• Face Value = Rs. 10
• Premium = Rs. 3
• Issue Price = Rs. 13

Payment Schedule per share:

• Application: Rs. 3
• Allotment: Rs. 5 (including premium of Rs. 3)
• Balance on Calls: Rs. 5

Application and Allotment Details:

Applied for 100 shares → Paid on application = 100 × 3 = Rs. 300

Allotted only 50 shares → Application money required = 50 × 3 = Rs. 150

Excess application money = 300 - 150 = Rs. 150 (to be adjusted towards allotment)

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Allotment Analysis:

Allotment due on 50 shares = 50 × 5 = Rs. 250

This Rs. 250 comprises:

• Share Capital portion = 50 × 2 = Rs. 100
• Premium portion = 50 × 3 = Rs. 150

When excess application money of Rs. 150 is adjusted towards allotment, as per standard practice, it is first applied towards the share capital component.

Therefore:

• Share Capital portion received = Rs. 100 (fully adjusted)
• Premium portion received = Rs. 150 - Rs. 100 = Rs. 50

Premium not received = Rs. 150 - Rs. 50 = Rs. 100

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On forfeiture of shares, the Securities Premium Account must be debited to the extent premium was credited but not actually received (either in cash or through adjustment).

Amount to be debited to Securities Premium A/c = Rs. 100

Correct Option: 3