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A company on non-receipt of First Call money of Rs.2 per share and Final Call money of Rs.3 per share from Rahul, debited Call-in-Arrears account by Rs. 2,000 and Rs.3,000 respectively. After due notice 1,000 shares of Rs.10 each were forfeited from Rahul. The amount to be credited to First Call Account at the time of entry for forfeiture will be: (a) Rs.2,000. (b) Rs.3,000. (c) Nil. (d) Rs.10,000?
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A company on non-receipt of First Call money of Rs.2 per share and Fin...
Answer:

The amount to be credited to First Call Account at the time of entry for forfeiture will be Nil.


Explanation:


  • First Call money of Rs.2 per share and Final Call money of Rs.3 per share were due from Rahul, but he did not pay it.

  • The company debited Call-in-Arrears account by Rs.2,000 and Rs.3,000 respectively.

  • After due notice, 1,000 shares of Rs.10 each were forfeited from Rahul.

  • Forfeiture of shares means cancellation of shares of a shareholder who has not paid the due amount.

  • At the time of forfeiture, the shareholder loses all the rights and privileges attached to the forfeited shares.

  • The company can recover the amount due from the forfeited shares by selling them in the market.

  • The amount received from the sale of forfeited shares is credited to Forfeiture Account.

  • The balance in the Forfeiture Account is then transferred to Capital Reserve Account.

  • Since the First Call money was not paid by Rahul, there was no amount due to be recovered from the forfeited shares.

  • Hence, the amount to be credited to First Call Account at the time of entry for forfeiture will be Nil.

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A company on non-receipt of First Call money of Rs.2 per share and Final Call money of Rs.3 per share from Rahul, debited Call-in-Arrears account by Rs. 2,000 and Rs.3,000 respectively. After due notice 1,000 shares of Rs.10 each were forfeited from Rahul. The amount to be credited to First Call Account at the time of entry for forfeiture will be: (a) Rs.2,000. (b) Rs.3,000. (c) Nil. (d) Rs.10,000?
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A company on non-receipt of First Call money of Rs.2 per share and Final Call money of Rs.3 per share from Rahul, debited Call-in-Arrears account by Rs. 2,000 and Rs.3,000 respectively. After due notice 1,000 shares of Rs.10 each were forfeited from Rahul. The amount to be credited to First Call Account at the time of entry for forfeiture will be: (a) Rs.2,000. (b) Rs.3,000. (c) Nil. (d) Rs.10,000? 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 A company on non-receipt of First Call money of Rs.2 per share and Final Call money of Rs.3 per share from Rahul, debited Call-in-Arrears account by Rs. 2,000 and Rs.3,000 respectively. After due notice 1,000 shares of Rs.10 each were forfeited from Rahul. The amount to be credited to First Call Account at the time of entry for forfeiture will be: (a) Rs.2,000. (b) Rs.3,000. (c) Nil. (d) Rs.10,000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company on non-receipt of First Call money of Rs.2 per share and Final Call money of Rs.3 per share from Rahul, debited Call-in-Arrears account by Rs. 2,000 and Rs.3,000 respectively. After due notice 1,000 shares of Rs.10 each were forfeited from Rahul. The amount to be credited to First Call Account at the time of entry for forfeiture will be: (a) Rs.2,000. (b) Rs.3,000. (c) Nil. (d) Rs.10,000?.
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