Question

Pooja Lid. issued 50,00,000 equity share of ₹ 100 each at a premium of ₹ 30 per share. Half of the premium amount was payable on allotment and the remaining half was payable on first call. Raja to whom 500 shares were allotted failed to pay the first call and second and final call. His shares were forfeited. On forfeiture of shares the amount debited to 'securities premium reserve account' was:

Options

• ₹ 7,500

• ₹ 15,000

• Nil 

• ₹ 50,000

Answer 1

₹ 7,500

Explanation:

Amount of premium paid on allotment by Raja = 500 × 15 = ₹ 7,500

∴ The amount to be debited = ₹ 7,500