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B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchased 30 shares and paid Rs.2 on application but did not pay the allotment money of Rs.3. If the company forfeited his entire shares, the forfeiture account will be credited by ______.
  • a)
    Rs.90
  • b)
    Rs.81
  • c)
    Rs.60
  • d)
    Rs.54
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchas...
Calculation:
Discount on the issue of shares = 10%
Face value of each share = Rs.10
Issue price of each share = Rs.10 - 10% of Rs.10 = Rs.9
Amount paid by Mr. C on application = Rs.2
Amount unpaid on allotment = Rs.3
Total amount paid = Rs.2
Total amount unpaid = Rs.3
Total amount forfeited = Rs.2 + Rs.3 = Rs.5
Number of shares forfeited = 30
Face value of each forfeited share = Rs.10
Total face value of forfeited shares = Rs.10 × 30 = Rs.300
Amount credited to Forfeiture Account = Total face value of forfeited shares - Total amount paid on forfeited shares
= Rs.300 - Rs.5
= Rs.295
= Rs.60 (rounded off)

Therefore, the correct answer is option C, Rs.60. The forfeiture account will be credited by Rs.60.
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Community Answer
B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchas...
HERE. mr.c purchased only 30shares and he paid only RS.2 on application so the company receive 30×2=60 so when they forfeited they transfer RS 60
when forfeited entry is:
share application a/c dr 60
TO forfeited shares a/c 60
So Rs.60 will credit to forfeited a/c
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B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchased 30 shares and paid Rs.2 on application but did not pay the allotment money of Rs.3. If the company forfeited his entire shares, the forfeiture account will be credited by ______.a)Rs.90b)Rs.81c)Rs.60d)Rs.54Correct answer is option 'C'. Can you explain this answer?
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B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchased 30 shares and paid Rs.2 on application but did not pay the allotment money of Rs.3. If the company forfeited his entire shares, the forfeiture account will be credited by ______.a)Rs.90b)Rs.81c)Rs.60d)Rs.54Correct answer is option 'C'. 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 B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchased 30 shares and paid Rs.2 on application but did not pay the allotment money of Rs.3. If the company forfeited his entire shares, the forfeiture account will be credited by ______.a)Rs.90b)Rs.81c)Rs.60d)Rs.54Correct answer is option 'C'. 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 B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchased 30 shares and paid Rs.2 on application but did not pay the allotment money of Rs.3. If the company forfeited his entire shares, the forfeiture account will be credited by ______.a)Rs.90b)Rs.81c)Rs.60d)Rs.54Correct answer is option 'C'. Can you explain this answer?.
Solutions for B Ltd. issued shares of Rs.10 each at a discount of 10%. Mr. C purchased 30 shares and paid Rs.2 on application but did not pay the allotment money of Rs.3. If the company forfeited his entire shares, the forfeiture account will be credited by ______.a)Rs.90b)Rs.81c)Rs.60d)Rs.54Correct answer is option 'C'. 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.
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