UPSC Exam > UPSC Questions > A company forfeited 2000 share's of rupees 10...
Start Learning for Free
A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be?
Most Upvoted Answer
A company forfeited 2000 share's of rupees 10 each (which were issued ...
Forfeiture of Shares and Debit to Share Capital
Background:
- The company issued 2000 shares at par value of Rs. 10 each.
- The called-up value per share was Rs. 9.
- Mr. X failed to pay the first and final call money of Rs. 4 per share.
Forfeiture of Shares:
- Due to non-payment of the call money, the company forfeited the 2000 shares held by Mr. X.
- The forfeited shares are now the property of the company and Mr. X loses all rights and interests in them.
Debit to Share Capital:
- When shares are forfeited, the amount previously credited to share capital account needs to be reversed.
- In this case, the share capital account was credited with the total value of the 2000 shares at par value of Rs. 10 each, which is Rs. 20,000 (2000 shares x Rs. 10).
- Since the called-up value per share was Rs. 9, the total called-up value for 2000 shares would be Rs. 18,000 (2000 shares x Rs. 9).
- Therefore, the amount to be debited to share capital account upon forfeiture of shares would be the difference between the par value and the called-up value, which is Rs. 2,000 (Rs. 20,000 - Rs. 18,000).
- This amount of Rs. 2,000 will be debited to the share capital account to reflect the reduction in the company's share capital due to the forfeiture of shares.
In conclusion, upon the forfeiture of 2000 shares held by Mr. X for non-payment of call money, the company will debit Rs. 2,000 to the share capital account.
Background:
- The company issued 2000 shares at par value of Rs. 10 each.
- The called-up value per share was Rs. 9.
- Mr. X failed to pay the first and final call money of Rs. 4 per share.
Forfeiture of Shares:
- Due to non-payment of the call money, the company forfeited the 2000 shares held by Mr. X.
- The forfeited shares are now the property of the company and Mr. X loses all rights and interests in them.
Debit to Share Capital:
- When shares are forfeited, the amount previously credited to share capital account needs to be reversed.
- In this case, the share capital account was credited with the total value of the 2000 shares at par value of Rs. 10 each, which is Rs. 20,000 (2000 shares x Rs. 10).
- Since the called-up value per share was Rs. 9, the total called-up value for 2000 shares would be Rs. 18,000 (2000 shares x Rs. 9).
- Therefore, the amount to be debited to share capital account upon forfeiture of shares would be the difference between the par value and the called-up value, which is Rs. 2,000 (Rs. 20,000 - Rs. 18,000).
- This amount of Rs. 2,000 will be debited to the share capital account to reflect the reduction in the company's share capital due to the forfeiture of shares.
In conclusion, upon the forfeiture of 2000 shares held by Mr. X for non-payment of call money, the company will debit Rs. 2,000 to the share capital account.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Top Courses for UPSCView all
A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be?
Question Description
A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be?.
A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be?.
Solutions for A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be? defined & explained in the simplest way possible. Besides giving the explanation of
A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be?, a detailed solution for A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be? has been provided alongside types of A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be? theory, EduRev gives you an
ample number of questions to practice A company forfeited 2000 share's of rupees 10 each (which were issued at par) held by Mr.x for non payment of first &final call money of rupees 4 per share. The called up value per share was rupee's9 . On forfeited, the amount debited to share capital will be? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup