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The Authorised capital (Rs 10 per share) of a company is Rs 5 lakhs, Issued capital Rs 3 lakhs and subscribed Capital Rs 2 lakhs. It has received Rs 5 per share on application and allotment and Rs 2 per share on first call except on 2,500 shares, which have not been forfeited. Share capital A/c is credited by A- Rs. 1,35,000 B- Rs. 2,10,000 C- Rs. 1,40,000 D- Rs. 3,50,000?
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Most Upvoted Answer
The Authorised capital (Rs 10 per share) of a company is Rs 5 lakhs, I...
Calculation of Share Capital

Authorized Capital: Rs 5,00,000 (Rs 10 per share)
Issued Capital: Rs 3,00,000
Subscribed Capital: Rs 2,00,000

Amount received on share:

On application and allotment: Rs 5 per share
On first call: Rs 2 per share (except on 2,500 shares)

Number of shares issued = Issued capital/ Face value per share
= Rs 3,00,000 / Rs 10
= 30,000 shares

Number of shares subscribed = Subscribed capital/ Face value per share
= Rs 2,00,000 / Rs 10
= 20,000 shares

Amount received on application and allotment:
= Rs 5 per share x 20,000 shares
= Rs 1,00,000

Amount received on first call:
= Rs 2 per share x (20,000 shares – 2,500 shares)
= Rs 35,000

Amount received on 2,500 shares not forfeited:
= Rs 10 per share – Rs 5 per share – Rs 2 per share
= Rs 3 per share x 2,500 shares
= Rs 7,500

Total amount credited to Share Capital A/c:
= Amount received on application and allotment + Amount received on first call + Amount received on 2,500 shares not forfeited
= Rs 1,00,000 + Rs 35,000 + Rs 7,500
= Rs 1,42,500

Therefore, the answer is C-Rs. 1,40,000.

Explanation:

The company's authorized capital is Rs 5,00,000, divided into Rs 10 shares. The issued capital is Rs 3,00,000, which means that 30,000 shares have been issued. The subscribed capital is Rs 2,00,000, which means that 20,000 shares have been subscribed by investors.

The company received Rs 5 per share on application and allotment, which amounts to Rs 1,00,000. On the first call, the company received Rs 2 per share, except on 2,500 shares which were not forfeited. This amounts to Rs 35,000. On the 2,500 shares that were not forfeited, the company received Rs 3 per share, which amounts to Rs 7,500.

Therefore, the total amount credited to the Share Capital A/c is Rs 1,42,500.
Community Answer
The Authorised capital (Rs 10 per share) of a company is Rs 5 lakhs, I...
As the shares are not forfeited, we write the due entry before money received.
share application alc. Dr
share allotment alc. Dr
first/final call alc. Dr
To share capital alc
so, 2lakhs×10=20lakhs
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The Authorised capital (Rs 10 per share) of a company is Rs 5 lakhs, Issued capital Rs 3 lakhs and subscribed Capital Rs 2 lakhs. It has received Rs 5 per share on application and allotment and Rs 2 per share on first call except on 2,500 shares, which have not been forfeited. Share capital A/c is credited by A- Rs. 1,35,000 B- Rs. 2,10,000 C- Rs. 1,40,000 D- Rs. 3,50,000?
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The Authorised capital (Rs 10 per share) of a company is Rs 5 lakhs, Issued capital Rs 3 lakhs and subscribed Capital Rs 2 lakhs. It has received Rs 5 per share on application and allotment and Rs 2 per share on first call except on 2,500 shares, which have not been forfeited. Share capital A/c is credited by A- Rs. 1,35,000 B- Rs. 2,10,000 C- Rs. 1,40,000 D- Rs. 3,50,000? 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 The Authorised capital (Rs 10 per share) of a company is Rs 5 lakhs, Issued capital Rs 3 lakhs and subscribed Capital Rs 2 lakhs. It has received Rs 5 per share on application and allotment and Rs 2 per share on first call except on 2,500 shares, which have not been forfeited. Share capital A/c is credited by A- Rs. 1,35,000 B- Rs. 2,10,000 C- Rs. 1,40,000 D- Rs. 3,50,000? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Authorised capital (Rs 10 per share) of a company is Rs 5 lakhs, Issued capital Rs 3 lakhs and subscribed Capital Rs 2 lakhs. It has received Rs 5 per share on application and allotment and Rs 2 per share on first call except on 2,500 shares, which have not been forfeited. Share capital A/c is credited by A- Rs. 1,35,000 B- Rs. 2,10,000 C- Rs. 1,40,000 D- Rs. 3,50,000?.
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