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Question
Aysha Ltd. forfeited 1,10,000 shares of ₹ 10 each issued at 20% premium for the non-payment of first call of ₹ 2 per share and final call of ₹ 3 per share, Share Forfeited Account will be credited with ______.
Options
₹ 5,50,000
₹ 7,70,000
₹ 2,20,000
₹ 5,00,000
Solution
Aysha Ltd. forfeited 1,10,000 shares of ₹ 10 each issued at 20% premium for the non-payment of first call of ₹ 2 per share and final call of ₹ 3 per share, Share Forfeited Account will be credited with ₹ 5,50,000.
Explanation:
| Share Capital A/c ...Dr. | 11,00,000 | |
| To Share First Call A/c `(1,10,000 xx ₹ 2)` | 2,20,000 | |
| To Share First Call A/c `(1,10,000 xx ₹ 3) ` | 3,30,000 | |
| To Share Forfeiture A/c | 5,50,000 |
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