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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.20
On allotment Rs.50 (including premium)
On first call Rs.30
On second and final call Rs.20
Applications 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 E’s forfeited shares being reissued.
 
Q.Net balance in Securities Premium Account = ________.
  • a)
    Rs 39,20,000
  • b)
    Rs 39,28,000
  • c)
    Rs 39,36,000
  • d)
    Rs 39,44,000
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per...
Calculation of Securities Premium Account Balance:

1. Total amount received on application:
= 3,00,000 shares x Rs.20 per share
= Rs.60,00,000

2. Amount adjusted against allotment money:
= 2,40,000 shares x Rs.70 per share (Rs.50 allotment + Rs.20 premium)
= Rs.1,68,00,000

3. Allotment money due from E (4,000 shares):
= 4,000 shares x Rs.70 per share
= Rs.2,80,000

4. First call money received:
= 2,40,000 shares x Rs.30 per share
= Rs.72,00,000

5. First call money due from E (4,000 shares):
= 4,000 shares x Rs.30 per share
= Rs.1,20,000

6. Second and final call money received:
= 2,34,000 shares x Rs.20 per share
= Rs.46,80,000

7. Second and final call money due from F (6,000 shares):
= 6,000 shares x Rs.20 per share
= Rs.1,20,000

8. Forfeited shares:
- E's 4,000 shares
- F's 6,000 shares

Total forfeited shares = 10,000 shares

9. Reissued shares:
- E's 4,000 shares (reissued at a discount of 10%)
- Remaining 6,000 shares (reissued at face value)

Total reissued shares = 10,000 shares

10. Reissued shares at a discount of 10%:
= 4,000 shares x Rs.90 per share
= Rs.3,60,000

11. Reissued shares at face value:
= 6,000 shares x Rs.100 per share
= Rs.6,00,000

12. Securities premium account balance:
= Total amount received on application - Amount adjusted against allotment money - Amount adjusted against reissued shares at a discount
= Rs.60,00,000 - Rs.1,68,00,000 - Rs.3,60,000
= Rs.39,20,000

Therefore, the net balance in Securities Premium Account is Rs.39,20,000 (option A).
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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 Securities Premium Account = ________.a)Rs 39,20,000b)Rs 39,28,000c)Rs 39,36,000d)Rs 39,44,000Correct answer is option 'A'. Can you explain this answer?
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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 Securities Premium Account = ________.a)Rs 39,20,000b)Rs 39,28,000c)Rs 39,36,000d)Rs 39,44,000Correct answer is option 'A'. Can you explain this answer? 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 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 Securities Premium Account = ________.a)Rs 39,20,000b)Rs 39,28,000c)Rs 39,36,000d)Rs 39,44,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 Securities Premium Account = ________.a)Rs 39,20,000b)Rs 39,28,000c)Rs 39,36,000d)Rs 39,44,000Correct answer is option 'A'. Can you explain this answer?.
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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 Securities Premium Account = ________.a)Rs 39,20,000b)Rs 39,28,000c)Rs 39,36,000d)Rs 39,44,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for 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 Securities Premium Account = ________.a)Rs 39,20,000b)Rs 39,28,000c)Rs 39,36,000d)Rs 39,44,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of 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 Securities Premium Account = ________.a)Rs 39,20,000b)Rs 39,28,000c)Rs 39,36,000d)Rs 39,44,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice 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 Securities Premium Account = ________.a)Rs 39,20,000b)Rs 39,28,000c)Rs 39,36,000d)Rs 39,44,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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