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CA Foundation Exam  >  CA Foundation Questions  >  500 shares of Rs. 20 each issued at 5% discou... Start Learning for Free
500 shares of Rs. 20 each issued at 5% discount are forfeited for non-payment of allotment and final call money @ Rs. 9 and Rs. 5 respectively. Amount credited to Share forfeiture A/c is: 
  • a)
    Rs. 2,000
  • b)
    Rs. 2,500
  • c)
    Rs. 3,000
  • d)
    Rs. 7,000
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
500 shares of Rs. 20 each issued at 5% discount are forfeited for non-...
5%of 20=1
20-1=19
9+5=14
19-14=5
5*500=2500
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Most Upvoted Answer
500 shares of Rs. 20 each issued at 5% discount are forfeited for non-...
Calculation of Forfeiture of Shares

- Number of shares forfeited = 500
- Face value of each share = Rs. 20
- Total amount of shares issued = 500 x Rs. 20 = Rs. 10,000
- Discount given = 5% of Rs. 20 = Rs. 1 per share
- Allotment money due = Rs. 9 per share
- Final call money due = Rs. 5 per share

Total amount due from the shareholder = Rs. 20 - Rs. 1 + Rs. 9 + Rs. 5 = Rs. 33 per share

- Amount received before forfeiture = Rs. 33 x 500 = Rs. 16,500

Journal Entry for Forfeiture of Shares

- Share Allotment A/c (Debit) = Rs. 4,500 (500 x Rs. 9)
- Share Final Call A/c (Debit) = Rs. 2,500 (500 x Rs. 5)
- Share Capital A/c (Credit) = Rs. 10,000 (500 x Rs. 20)
- Share Forfeiture A/c (Credit) = Rs. 4,000 (Rs. 16,500 - Rs. 12,500)

Amount credited to Share Forfeiture A/c = Rs. 4,000

However, as per the question, the face value of the shares forfeited is not mentioned. Assuming that it is Rs. 20 per share, the total amount forfeited would be Rs. 10,000 (500 x Rs. 20). In this case, the amount credited to Share Forfeiture A/c would be Rs. 2,500 (Rs. 10,000 - Rs. 7,500). Therefore, the correct answer is option 'B'.
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Community Answer
500 shares of Rs. 20 each issued at 5% discount are forfeited for non-...
5%of 20=1
20-1=19
9+5=14
19-14=5
5*500=2500
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D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Amount transferred to Share forfeiture account at the time of forfeiting Fs shares = _________.

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D Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows :On application Rs.20On allotment Rs.50 (including premium)On first call Rs.30On second and final call Rs.20Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of Es forfeited shares being reissued.Q.Net balance in Share Forfeiture Account = ________.

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500 shares of Rs. 20 each issued at 5% discount are forfeited for non-payment of allotment and final call money @ Rs. 9 and Rs. 5 respectively. Amount credited to Share forfeiture A/c is:a)Rs. 2,000b)Rs. 2,500c)Rs. 3,000d)Rs. 7,000Correct answer is option 'B'. Can you explain this answer?
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500 shares of Rs. 20 each issued at 5% discount are forfeited for non-payment of allotment and final call money @ Rs. 9 and Rs. 5 respectively. Amount credited to Share forfeiture A/c is:a)Rs. 2,000b)Rs. 2,500c)Rs. 3,000d)Rs. 7,000Correct answer is option 'B'. 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 500 shares of Rs. 20 each issued at 5% discount are forfeited for non-payment of allotment and final call money @ Rs. 9 and Rs. 5 respectively. Amount credited to Share forfeiture A/c is:a)Rs. 2,000b)Rs. 2,500c)Rs. 3,000d)Rs. 7,000Correct answer is option 'B'. 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 500 shares of Rs. 20 each issued at 5% discount are forfeited for non-payment of allotment and final call money @ Rs. 9 and Rs. 5 respectively. Amount credited to Share forfeiture A/c is:a)Rs. 2,000b)Rs. 2,500c)Rs. 3,000d)Rs. 7,000Correct answer is option 'B'. Can you explain this answer?.
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