the company issued shares of rs 10 each at a premimum of rs 2 payable as :
on application - 3rs
on allotment - 4 rs (including premium)
on 1st call - 3rs
on final call - 2 rs
Mr.E who holds 100 shares failed to pay the 1st call money .the comany has forfeited the 100 shares after the 1st call .On forfeiture the amount debited to sharecapital account is
a) 1200 rs b)1000 rs c )800 rs d)700 rs
ans : c)800 please explain how please
Particulars Amount credited to Share Capital A/c
On Application 3x100 = 300
On Allotment 2x100 = 200
On 1st Call 3x100 = 300
Total 800
hence amount to be debited on forfeiture to share capital A/c is Rs. 800.
Varma Raja & Associates
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CA Inter
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Goodwin Pumps India Pvt Ltd
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S.B.G. & CO. CHARTERED ACCOUNTANTS
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M N Rao & Associates LLP
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CCI
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