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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 will be __________
- 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 ...
Calculation of amount debited to share capital on forfeiture:
To calculate the amount debited to share capital on forfeiture, we need to consider the following factors:
1. Number of forfeited shares:
- The company forfeited 2,000 shares held by Mr. John.
2. Issue price per share:
- The shares were issued at par, which means the issue price per share was Rs. 10.
3. Allotment money per share:
- Mr. John did not pay the allotment money of Rs. 4 per share.
4. Called-up value per share:
- The called-up value per share was Rs. 9.
Calculation:
1. Amount called-up per share:
- The called-up value per share was Rs. 9.
2. Amount paid by Mr. John:
- Mr. John did not pay the allotment money of Rs. 4 per share.
3. Amount forfeited per share:
- The amount forfeited per share can be calculated as follows:
= Amount called-up per share - Amount paid by Mr. John
= Rs. 9 - Rs. 4
= Rs. 5
4. Amount debited to share capital:
- The amount debited to share capital on forfeiture can be calculated as follows:
= Number of forfeited shares * Amount forfeited per share
= 2,000 shares * Rs. 5
= Rs. 10,000
Therefore, the amount debited to share capital on forfeiture is Rs. 10,000.
Conclusion:
The correct answer is option 'D' which states that the amount debited to share capital on forfeiture is Rs. 10,000.
To calculate the amount debited to share capital on forfeiture, we need to consider the following factors:
1. Number of forfeited shares:
- The company forfeited 2,000 shares held by Mr. John.
2. Issue price per share:
- The shares were issued at par, which means the issue price per share was Rs. 10.
3. Allotment money per share:
- Mr. John did not pay the allotment money of Rs. 4 per share.
4. Called-up value per share:
- The called-up value per share was Rs. 9.
Calculation:
1. Amount called-up per share:
- The called-up value per share was Rs. 9.
2. Amount paid by Mr. John:
- Mr. John did not pay the allotment money of Rs. 4 per share.
3. Amount forfeited per share:
- The amount forfeited per share can be calculated as follows:
= Amount called-up per share - Amount paid by Mr. John
= Rs. 9 - Rs. 4
= Rs. 5
4. Amount debited to share capital:
- The amount debited to share capital on forfeiture can be calculated as follows:
= Number of forfeited shares * Amount forfeited per share
= 2,000 shares * Rs. 5
= Rs. 10,000
Therefore, the amount debited to share capital on forfeiture is Rs. 10,000.
Conclusion:
The correct answer is option 'D' which states that the amount debited to share capital on forfeiture is Rs. 10,000.
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A company forfeited 2,000 shares of Rs. 10 each (which were issued at ...
9*2000. since share capital is always debited with called up value in forfeiture
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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 will be __________a)Rs. 10,000b)Rs. 8,000c)Rs. 2,000d)Rs. 18,000Correct 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 will be __________a)Rs. 10,000b)Rs. 8,000c)Rs. 2,000d)Rs. 18,000Correct 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 will be __________a)Rs. 10,000b)Rs. 8,000c)Rs. 2,000d)Rs. 18,000Correct 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 will be __________a)Rs. 10,000b)Rs. 8,000c)Rs. 2,000d)Rs. 18,000Correct 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 will be __________a)Rs. 10,000b)Rs. 8,000c)Rs. 2,000d)Rs. 18,000Correct 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 will be __________a)Rs. 10,000b)Rs. 8,000c)Rs. 2,000d)Rs. 18,000Correct 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 will be __________a)Rs. 10,000b)Rs. 8,000c)Rs. 2,000d)Rs. 18,000Correct 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 will be __________a)Rs. 10,000b)Rs. 8,000c)Rs. 2,000d)Rs. 18,000Correct 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 will be __________a)Rs. 10,000b)Rs. 8,000c)Rs. 2,000d)Rs. 18,000Correct 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 will be __________a)Rs. 10,000b)Rs. 8,000c)Rs. 2,000d)Rs. 18,000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
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