A company invited applications for 50,000 shares of ₹10 each at a premium of ₹2 per share, payable as ₹3 on application, ₹5 on allotment (including premium) and the balance on call. Applications for 80,000 shares were re
CS Executive · Corporate and Management Accounting · PYQS · December 2022
A company invited applications for 50,000 shares of ₹10 each at a premium of ₹2 per share, payable as ₹3 on application, ₹5 on allotment (including premium) and the balance on call. Applications for 80,000 shares were received, of which applications for 5,000 shares were rejected and the money was returned. Allotment was made pro-rata to the remaining applicants and the excess application money being used towards the allotment. R, to whom 200 shares were allotted failed to pay the amount due on allotment and call. If his shares were forfeited and reissued at the rate of ₹11 per share, then the amount transferred to capital reserve account would be :
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Company Accounts
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