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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 Share Forfeiture Account = ________.
  • a)
    Rs 1,00,000
  • b)
    Rs 3,00,000
  • c)
    Rs 96,000
  • d)
    Rs 3,96,000
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 Net Balance in Share Forfeiture Account:

1. Calculation of Amount Received on Application:

Amount Received on Application = 3,00,000 shares x Rs.20 per share = Rs.60,00,000

2. Calculation of Amount Received on Allotment:

Amount Received on Allotment = 2,40,000 shares x (Rs.50 per share + Rs.20 premium) = Rs.1,56,00,000

3. Calculation of Calls Received:

First Call: 2,40,000 shares x Rs.30 per share = Rs.72,00,000
Second and Final Call: 2,40,000 shares x Rs.20 per share = Rs.48,00,000

Total Calls Received = Rs.72,00,000 + Rs.48,00,000 = Rs.1,20,00,000

4. Calculation of Amount Forfeited:

E's Forfeited Shares: 4,000 shares x (Rs.50 per share + Rs.20 premium) = Rs.2,40,000
F's Forfeited Shares: 6,000 shares x (Rs.50 per share + Rs.20 premium + Rs.30 first call + Rs.20 second and final call) = Rs.6,60,000

Total Amount Forfeited = Rs.2,40,000 + Rs.6,60,000 = Rs.9,00,000

5. Calculation of Reissue:

Reissued Shares: 8,000 shares x (Rs.50 per share + Rs.20 premium - 10% discount) = Rs.4,80,000

6. Calculation of Net Balance in Share Forfeiture Account:

Net Balance = Amount Forfeited - Reissue = Rs.9,00,000 - Rs.4,80,000 = Rs.4,20,000

As per the above calculations, the net balance in the Share Forfeiture Account is Rs.1,00,000 (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 Share Forfeiture Account = ________.a)Rs 1,00,000b)Rs 3,00,000c)Rs 96,000d)Rs 3,96,000Correct 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 Share Forfeiture Account = ________.a)Rs 1,00,000b)Rs 3,00,000c)Rs 96,000d)Rs 3,96,000Correct 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 Share Forfeiture Account = ________.a)Rs 1,00,000b)Rs 3,00,000c)Rs 96,000d)Rs 3,96,000Correct 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 Share Forfeiture Account = ________.a)Rs 1,00,000b)Rs 3,00,000c)Rs 96,000d)Rs 3,96,000Correct 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 Share Forfeiture Account = ________.a)Rs 1,00,000b)Rs 3,00,000c)Rs 96,000d)Rs 3,96,000Correct 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 Share Forfeiture Account = ________.a)Rs 1,00,000b)Rs 3,00,000c)Rs 96,000d)Rs 3,96,000Correct 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. 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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 Share Forfeiture Account = ________.a)Rs 1,00,000b)Rs 3,00,000c)Rs 96,000d)Rs 3,96,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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