600 shares of ₹10 each were issued at 20% premium. Final call of ₹3 not received on 100 shares. What is the forfeiture amount?
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- ₹2000
- ₹1800
- ₹900
- ₹1000
The Correct Option is C
Solution and Explanation
- Calculate the Issue Price per Share:
- Face value of each share = ₹10
- Premium on each share = 20% of ₹10 = ₹2
- Total issue price per share = ₹10 + ₹2 = ₹12
- Understand the Final Call Scenario:
- Final call not received on 100 shares.
- Final call amount per share = ₹3
- Total final call amount not received = 100 shares × ₹3 = ₹300
- Forfeiture Amount Calculation:
- Forfeiture is the amount of money received on the shares that are being forfeited excluding calls that were not received.
- Total amount paid per forfeited share (excluding final call) = Total issue price - Final call = ₹12 - ₹3 = ₹9
- Total forfeiture amount = 100 shares × ₹9 = ₹900
Top Questions on Shares
According to Securities and Exchange Board of India (SEBI), guidelines, minimum subscription of capital cannot be less than 90% of .......
- The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as ........
Alexia Limited invited applications for issuing 1,00,000 equity shares of ₹ 10 each at premium of ₹ 10 per share.
The amount was payable as follows:- On application ₹ 9 per share (Including premium ₹ 6 per share)
- On allotment ₹ 8 per share (Including premium ₹ 4 per share)
- On first and final call ₹ 3 per share.
Applications were received for 1,50,000 equity shares and allotment was made to the applicants as follows:
Category A: Applicants for 90,000 shares were allotted 70,000 shares.
Category B: Applicants for 60,000 shares were allotted 30,000 shares.
Excess money received on application was adjusted towards allotment and first and final call.
Shekhar, who had applied for 1200 shares failed to pay the first and final call. Shekhar belonged to category B.
Pass necessary journal entries for the above transactions in the books of Alexia Limited. Open calls in arrears and calls in advance account, wherever necessary.- Suhas and Vilas were partners in a firm with capitals of Rs 4,00,000 and Rs 3,00,000 respectively. They admitted Prabhas as a new partner for a \( \frac{1}{5} \) share in future profits. Prabhas brought Rs 2,00,000 as his capital. Prabhas' share of goodwill will be:
- Ajay Ltd. forfeited 100 shares of Rs 10 each for non-payment of first call of Rs 1 per share and second and final call of Rs 3 per share. The minimum price per share at which these shares can be reissued will be:
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