X applied for 2,000 shares of ₹ 10 each at a premium of ₹ 2.50 per share. He was allotted 1,000 shares. After having paid ₹ 3 per share on application, he did not pay the allotment money of ₹ 4.50 per share (including pr
CS Executive · Corporate and Management Accounting · PYQS · December 2024
X applied for 2,000 shares of ₹ 10 each at a premium of ₹ 2.50 per share. He was allotted 1,000 shares. After having paid ₹ 3 per share on application, he did not pay the allotment money of ₹ 4.50 per share (including premium) and on his subsequent failure to pay the first call of ₹ 2 per share, his shares were forfeited. These shares were reissued @ ₹ 8 per share credited as fully paid-up. Calculate the amount of Securities Premium Reserve Account to be debited at the time of forfeiture of shares, assuming excess received at the time of application is first to be adjusted against share capital account.
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Share Capital
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