CA Foundation Exam  >  CA Foundation Questions  >  D Ltd. issued 2,00,000 shares of Rs.100 each ... Start Learning for Free
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 Capital Reserve Account = ________.
  • a)
    Rs 2,96,000
  • b)
    Rs 80,000
  • c)
    Rs 2,10,000
  • d)
    Rs 2,16,000
Correct answer is option 'D'. 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 Capital Reserve Account:

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

2. Amount adjusted towards sum due on allotment:
- 2,40,000 shares allotted x (Rs. 50 per share - Rs. 20 premium) = Rs. 72,00,000
- Excess received on application = Rs. 12,00,000
- Therefore, Rs. 12,00,000 was adjusted towards sum due on allotment

3. Total amount received on allotment:
- 2,40,000 shares allotted x Rs. 50 per share = Rs. 1,20,00,000

4. Total amount received on first call:
- 2,40,000 shares x Rs. 30 per share = Rs. 72,00,000

5. Total amount received on second and final call:
- 2,40,000 shares x Rs. 20 per share = Rs. 48,00,000

6. Amount forfeited from E:
- 4,000 shares x Rs. 70 per share (allotment + first call) = Rs. 2,80,000

7. Amount forfeited from F:
- 6,000 shares x Rs. 100 per share (allotment + first call + second call) = Rs. 6,00,000

8. Amount received from reissue of forfeited shares:
- 8,000 shares x Rs. 90 per share (10% discount) = Rs. 7,20,000

9. Calculation of Capital Reserve:
- Total amount received on issue of shares = Rs. 1,80,00,000 (2,00,000 shares x Rs. 100 per share)
- Add: Premium received on issue of shares = Rs. 40,00,000 (2,00,000 shares x Rs. 20 premium per share)
- Total amount credited to Share Premium Account = Rs. 40,00,000
- Less: Amount used to adjust allotment money = Rs. 12,00,000
- Balance in Share Premium Account = Rs. 28,00,000
- Amount transferred to Capital Reserve Account = Rs. 28,00,000

10. Net balance in Capital Reserve Account:
- Capital Reserve Account balance before transfer = Nil
- Amount transferred to Capital Reserve Account = Rs. 28,00,000
- Less: Amount forfeited from E = Rs. 2,80,000
- Less: Amount forfeited from F = Rs. 6,00,000
- Add: Amount received from reissue of forfeited shares = Rs. 7,20,000
- Net balance in Capital Reserve Account = Rs. 2,16,000

Therefore, the correct option is D, Rs. 2,16,000.
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.Net balance in Capital Reserve Account = ________.a)Rs 2,96,000b)Rs 80,000c)Rs 2,10,000d)Rs 2,16,000Correct answer is option 'D'. Can you explain this answer?
Question Description
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 = ________.a)Rs 2,96,000b)Rs 80,000c)Rs 2,10,000d)Rs 2,16,000Correct answer is option 'D'. 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 Capital Reserve Account = ________.a)Rs 2,96,000b)Rs 80,000c)Rs 2,10,000d)Rs 2,16,000Correct answer is option 'D'. 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 Capital Reserve Account = ________.a)Rs 2,96,000b)Rs 80,000c)Rs 2,10,000d)Rs 2,16,000Correct answer is option 'D'. Can you explain this answer?.
Solutions 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 Capital Reserve Account = ________.a)Rs 2,96,000b)Rs 80,000c)Rs 2,10,000d)Rs 2,16,000Correct answer is option 'D'. Can you explain this answer? 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 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 = ________.a)Rs 2,96,000b)Rs 80,000c)Rs 2,10,000d)Rs 2,16,000Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation 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 Capital Reserve Account = ________.a)Rs 2,96,000b)Rs 80,000c)Rs 2,10,000d)Rs 2,16,000Correct answer is option 'D'. 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 Capital Reserve Account = ________.a)Rs 2,96,000b)Rs 80,000c)Rs 2,10,000d)Rs 2,16,000Correct answer is option 'D'. 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 Capital Reserve Account = ________.a)Rs 2,96,000b)Rs 80,000c)Rs 2,10,000d)Rs 2,16,000Correct answer is option 'D'. 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 Capital Reserve Account = ________.a)Rs 2,96,000b)Rs 80,000c)Rs 2,10,000d)Rs 2,16,000Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
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