On January 1, 2024, the Director of X Ltd. issued for public subscription 50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on application (including premium), Rs. 4 on allotment and the balance on call on May 01, 2024. The issue was closed on February 10, 2024 by which date applications for 70,000 shares were received. Of the cash received Rs. 40,000 was returned and Rs. 60,000 was applied to the amount due on allotment, the balance of which was paid on February 16, 2024. All the shareholders paid the call due on May 01, 2024 with the exception of an allottee of 500 shares. These shares were forfeited on September 29, 2024 and reissued as fully paid at Rs. 8 per share on November 01, 2024. The company, as a matter of policy, does not maintain a calls-in-arrears account.On Forfeiture of 500 shares for non-payment of call money, what amount will be credited to Shares Forfeiture Account?
- ARs. 2500
- BRs. 3500
- CRs. 4500
- DRs. 1500
Solution & Step-by-step Explanation
Let's calculate the exact paid-up amount that the company forfeits from the shareholder:Determine the breakdown of the issue price:Share Face Value = , Premium value = (Total Issue Price = )Application Stage = ()Allotment Stage = Balance due on final call = per share.Identify the paid-up capital amount:The shareholder defaulted on the final call ( per share), which means they paid all previous installments.Only the paid-up face value capital amount is credited to the Share Forfeiture Account (the premium amount collected at the application stage cannot be reversed or added to the forfeiture profits under Section 52 rules).
Calculate the total amount credited to the Share Forfeiture Account:
Calculate the total amount credited to the Share Forfeiture Account: