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Traders Ltd. had its capital of ₹50,000 divided into ₹10 per share. On 1st October, 2020 shares were issued at par. Amount was payable ₹7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of ₹2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:
Share Capital A/c Dr. ₹X
To Share Forfeiture A/c ₹Y
To Share Allotment A/c ₹Z
Here X, Y, and Z are:
Share Capital A/c Dr. ₹X
To Share Forfeiture A/c ₹Y
To Share Allotment A/c ₹Z
Here X, Y, and Z are:
- a)₹10,000, ₹7,500, and ₹2,500 respectively
- b)₹10,000, ₹2,500, and ₹7,500 respectively
- c)₹7,000, ₹3,000, and ₹4,000 respectively
- d)₹12,000, ₹7,500, and 4,500 respectively
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1...
Share Forfeiture A/c = 1,000 × ₹7.5 = ₹7,500
Share Allotment A/c = 1,000 × ₹2.5 = ₹2,500
Share Allotment A/c = 1,000 × ₹2.5 = ₹2,500
Most Upvoted Answer
Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1...
Explanation:
Basic Information:
- Traders Ltd. had its capital of 50,000 divided into 10 per share.
- Shares were issued at par on 1st October 2020.
- Amount payable on application was 7.50 per share.
- Remaining amount was payable on allotment.
- In November 2020, allotment was made.
- Shareholders of 1,000 shares did not pay the allotment money of 2.50 per share.
- On 31st January 2021, these shares were forfeited.
Entry to be Passed:
The entry to be passed for the forfeiture of shares is as follows:
Share Capital A/c Dr. X
To Share Forfeiture A/c Y
To Share Allotment A/c Z
Explanation of the Entry:
- Share Capital A/c is debited to reduce the amount of share capital in the company's books.
- Share Forfeiture A/c is credited with the value of forfeited shares.
- Share Allotment A/c is credited with the unpaid allotment money.
Calculating the Values:
- The total number of forfeited shares is 1,000.
- The value of each forfeited share is the total value paid on application and allotment, which is 7.50 + 2.50 = 10.00 per share.
- Therefore, the value of forfeited shares is 1,000 x 10.00 = 10,000.
Final Answer:
Hence, the correct values for X, Y, and Z in the entry are:
- X = 10,000 (Share Capital A/c)
- Y = 7,500 (Share Forfeiture A/c)
- Z = 2,500 (Share Allotment A/c)
Therefore, the correct answer is option 'A' (10,000, 7,500, and 2,500 respectively).
Basic Information:
- Traders Ltd. had its capital of 50,000 divided into 10 per share.
- Shares were issued at par on 1st October 2020.
- Amount payable on application was 7.50 per share.
- Remaining amount was payable on allotment.
- In November 2020, allotment was made.
- Shareholders of 1,000 shares did not pay the allotment money of 2.50 per share.
- On 31st January 2021, these shares were forfeited.
Entry to be Passed:
The entry to be passed for the forfeiture of shares is as follows:
Share Capital A/c Dr. X
To Share Forfeiture A/c Y
To Share Allotment A/c Z
Explanation of the Entry:
- Share Capital A/c is debited to reduce the amount of share capital in the company's books.
- Share Forfeiture A/c is credited with the value of forfeited shares.
- Share Allotment A/c is credited with the unpaid allotment money.
Calculating the Values:
- The total number of forfeited shares is 1,000.
- The value of each forfeited share is the total value paid on application and allotment, which is 7.50 + 2.50 = 10.00 per share.
- Therefore, the value of forfeited shares is 1,000 x 10.00 = 10,000.
Final Answer:
Hence, the correct values for X, Y, and Z in the entry are:
- X = 10,000 (Share Capital A/c)
- Y = 7,500 (Share Forfeiture A/c)
- Z = 2,500 (Share Allotment A/c)
Therefore, the correct answer is option 'A' (10,000, 7,500, and 2,500 respectively).
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Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer?
Question Description
Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer?.
Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12.
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Here you can find the meaning of Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Traders Ltd. had its capital of 50,000 divided into 10 per share. On 1st October, 2020 shares were issued at par. Amount was payable 7.50 per share on application and remaining on allotment. In Nov., 2020 allotment was made. Shareholders of 1,000 shares did not pay his allotment money of 2.50 per share and on 31st January, 2021 these shares were forfeited. The following entry will be passed:Share Capital A/c Dr. XTo Share Forfeiture A/c YTo Share Allotment A/c ZHere X, Y, and Z are:a)10,000, 7,500, and 2,500 respectivelyb)10,000, 2,500, and 7,500 respectivelyc)7,000, 3,000, and 4,000 respectivelyd)12,000, 7,500, and 4,500 respectivelyCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Class 12 tests.
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