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Question : X Ltd. invited applications for 50,000 shares of Rs.10 each at 10% premium, payable on Rs.3 on application, Rs.3 on allotment and balance amount on first and final call Applications were received for 1,20,000 shares and shares were allotted on pro-rata basis The excess money received on application was to be adjusted against allotment only. A shareholder who applied for 6,000 shares, could not pay the call money and his shares were accordingly forfeited.

Question:- At the time of forfeiture of shares, share forfeited account will be credited with _____.

Option 1: Rs. 18,000

Option 2: Rs. 12,500

Option 3: Rs. 15,000

Option 4: Rs. 24,000


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

Correct Answer: Rs. 12,500


Solution : Answer = Rs. 12,500

Number of shares allotted = 2,500.
Application money = Rs.2 (excluding SPR)
Allotment money = Rs.3
Total money received after shares are forfeited = Rs.(2 + 3) X 2,500 = Rs.12,500 Shares.

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