All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
CA Foundation Exam  >  CA Foundation Questions  >  X ltd forfeited 20 shares of 10 each 8 called... Start Learning for Free
SaveJoin the Discussion on the App
X 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 ?
Clear all your CA Foundation doubts with EduRev
Most Upvoted Answer
X ltd forfeited 20 shares of 10 each 8 called up , on which John had p...
The company forfeited 20 shares@10 each, 8 called up. So share capital is debited with Rs. 160. 5 per share is paid by John on application and allotment, so share forfeiture account will be credited with Rs. 100(20*5). The remaining amount is not paid. So calls in arrears will be debited with Rs. 60(20*3).
15 are reissued at Rs. 6 per share. So share forfeiture will be debited with Rs. 30 (15*2) as 8 per share called up.
Now the balance in the share forfeiture account after relavent amount has been transferred to capital reserves will be Rs. 70(100-30).
Community Answer
X ltd forfeited 20 shares of 10 each 8 called up , on which John had p...
Balance in Share Forfeiture Account


  • Forfeiture of Shares: X Ltd forfeited 20 shares of 10 each, 8 called up.

  • Payment Made: John had paid application and allotment money of 5 per share.

  • Reissue of Shares: 15 shares were reissued to Parker as fully paid up for 6 per share.

  • Balance in Share Forfeiture Account: After transferring the relevant amount to the capital reserve account, the balance in the share forfeiture account can be calculated as follows:



The amount paid by John for the forfeited shares is 5 per share. Therefore, the total amount paid by John is 5 x 20 = 100.

The amount received from the reissue of shares is 6 per share. Therefore, the total amount received from the reissue of shares is 6 x 15 = 90.

Hence, the balance in the share forfeiture account after transferring the relevant amount to the capital reserve account is 100 - 90 = 10.

Explanation:

When shares are forfeited, the company has the right to retain the amount already paid by the shareholder and forfeit the remaining amount. In this case, John had paid 5 per share, and the company forfeited 2 per share (10 - 8).

After forfeiting the shares, the company can reissue them to other shareholders or new applicants. In this case, Parker purchased the forfeited shares for 6 per share, which is more than the forfeited amount of 2 per share.

The company can transfer the balance in the share forfeiture account to the capital reserve account. This is because the amount forfeited and the amount received from the reissue of shares are not a part of the company's revenue. Therefore, they cannot be considered as income and should be transferred to the capital reserve account.
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Amount transferred to Share forfeiture account at the time of forfeiting Fs shares = _________.

D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Amount transferred to Share forfeiture account at the time of forfeiting Es shares = _________.

D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Net balance in Share Forfeiture Account = ________.

D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued..Q.Net balance in Capital Reserve Account = ________.

Top Courses for CA FoundationView all

Top Courses for CA Foundation

X 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 ?
Question Description
X 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 ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X 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 ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X 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 ?.
Solutions for X 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 ? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of X 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 ? defined & explained in the simplest way possible. Besides giving the explanation of X 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 detailed solution for X 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 ? has been provided alongside types of X 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 ? theory, EduRev gives you an ample number of questions to practice X 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 ? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup