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Byju's Answer

Standard XII

Accountancy

Issued at Par and Redeemed at Premium

Asha Ltd, iss...

Question

Asha Ltd, issued shares of Rs. $100$ each at a premium of $25 %$ mamta who has Rs. $2, 000$ shares of Asha ltd. Failed Rs. $5$ . Premium was taken at the company. On forfeiture of Mamta's shares, the amount to be debited to share Premium account will be.

Rs.

5000

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Rs.

10, 000

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Rs.

15, 000

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Nil

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Solution

The correct option is D Nil
When the premium on shares is not received by the company then only it debits the unpaid premium amount while forfeiting the shares.
In this question, the company has received 25% premium from Mamta on her 2,000 shares. Hence, no amount would be debited to premium account on forfeit of shares since the amount to be received is excluding the security premium amount which is taken earlier by the company.

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Asha Ltd, issued shares of Rs. 100 each at a premium of 25% mamta who has Rs. 2,000 shares of Asha ltd. Failed Rs. 5. Premium was taken at the company. On forfeiture of Mamta's shares, the amount to be debited to share Premium account will be.

Asha Ltd, issued shares of Rs. $100$ each at a premium of $25 %$ mamta who has Rs. $2, 000$ shares of Asha ltd. Failed Rs. $5$ . Premium was taken at the company. On forfeiture of Mamta's shares, the amount to be debited to share Premium account will be.