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A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?
- a)Rs.10,000
- b)Rs.8,000
- c)Rs.2,000
- d)Rs.18,000.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A company forfeited 2,000 shares of Rs.10 each (which were issued at p...
The amount debited to share capital on forfeiture of shares:
When shares are forfeited, the amount debited to share capital is calculated based on the called-up value per share and the number of shares forfeited.
Given Information:
- Number of shares forfeited = 2,000
- Par value of shares = Rs.10
- Allotment money per share = Rs.4
- Called-up value per share = Rs.9
Calculation:
1. Par value per share:
The par value per share is given as Rs.10.
2. Allotment money per share:
The allotment money per share is given as Rs.4.
3. Called-up value per share:
The called-up value per share is given as Rs.9.
4. Amount not paid (Allotment money - Called-up value):
The amount not paid per share is calculated as:
Amount not paid = Allotment money per share - Called-up value per share
Amount not paid = Rs.4 - Rs.9 = -Rs.5
Since the amount not paid is negative, it means that the shareholder has not paid the required amount of Rs.5 per share.
5. Total amount not paid (Amount not paid per share * Number of shares forfeited):
The total amount not paid is calculated as:
Total amount not paid = Amount not paid per share * Number of shares forfeited
Total amount not paid = -Rs.5 * 2,000 = -Rs.10,000
Since the total amount not paid is negative, it means that the shareholders owe the company Rs.10,000.
6. Amount debited to share capital:
The amount debited to share capital on forfeiture is equal to the total amount not paid, which is Rs.10,000.
Therefore, the correct answer is option 'D' - Rs.18,000.
When shares are forfeited, the amount debited to share capital is calculated based on the called-up value per share and the number of shares forfeited.
Given Information:
- Number of shares forfeited = 2,000
- Par value of shares = Rs.10
- Allotment money per share = Rs.4
- Called-up value per share = Rs.9
Calculation:
1. Par value per share:
The par value per share is given as Rs.10.
2. Allotment money per share:
The allotment money per share is given as Rs.4.
3. Called-up value per share:
The called-up value per share is given as Rs.9.
4. Amount not paid (Allotment money - Called-up value):
The amount not paid per share is calculated as:
Amount not paid = Allotment money per share - Called-up value per share
Amount not paid = Rs.4 - Rs.9 = -Rs.5
Since the amount not paid is negative, it means that the shareholder has not paid the required amount of Rs.5 per share.
5. Total amount not paid (Amount not paid per share * Number of shares forfeited):
The total amount not paid is calculated as:
Total amount not paid = Amount not paid per share * Number of shares forfeited
Total amount not paid = -Rs.5 * 2,000 = -Rs.10,000
Since the total amount not paid is negative, it means that the shareholders owe the company Rs.10,000.
6. Amount debited to share capital:
The amount debited to share capital on forfeiture is equal to the total amount not paid, which is Rs.10,000.
Therefore, the correct answer is option 'D' - Rs.18,000.
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A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer?
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A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer?.
A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer?.
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A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr.John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital = ?a)Rs.10,000b)Rs.8,000c)Rs.2,000d)Rs.18,000.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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