1.

Vishnu Ltd. forfeited 20 shares of ₹10 each, ₹8 called up, on which John had paid application and allotment money of ₹5 per share, of these, 15 shares were reissued to Parker as fully paid up for ₹6 per share. What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account? (A) ₹0(B) ₹5(C) ₹25(D) ₹100

Answer»

Correct answer is: (C) ₹25

A)Share capital A/C Dr.(8*20)=160

To share forfeiture A/C (5*20)=100

To Calls in arrears A/C(3*20)=60

B)Bank A/C Dr. (6*15)=90

  Share forfeiture A/C Dr (4*15)=60

   To share capital A/C(10*15)=150

C) Share forfeiture A/C Dr. 15

    To share capital reserve A/C. 15

Working notes

Total capital=(10*15)=150

(Receive capital )=(5*15)=(75)

(Newly received capital)6*15=(90)

Capital reserve =(15)


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