MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Numerical Example of Share Capital

If a sharehol...

Question

If a shareholder does not pay his dues on allotment, for the amount due, there will be a ________________.

A

Credit balance in the share allotment Account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Debit balance in the share forfeiture Account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Credit balance in the share forfeiture Account

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Debit balance in the share allotment Account

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Debit balance in the share allotment Account
Share Allotment A/c represents collectively the amount due from all the shareholders on account of Allotment money.
Just like when you sell goods on credit, you don't receive money but credit sales, similarly though allotment money is not received but Share Capital A/c is credited.

Suggest Corrections

thumbs-up

0

Similar questions

Q. 'Telecom Ltd.' issued 20,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share, payable as: ₹ 7 (including premium) on application, ₹ 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for ₹ 1,600.
Give necessary entries in company's Journal and the Balance Sheet.

Q. A Ltd issued 20,000 Equity Shares of ₹ 10 each at a premium of ₹ 5 per share, payable as ₹ 7 (including premium) on application , ₹ 5 on allotment and the balance after three months of allotment.
A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for ₹ 1,600.
Give necessary entries in company's journal and the Balance Sheet.

Q. A Ltd. issued shares of

R s . 10

each at a discount of

10

%. Mr. B purchased

60

shares and paid

R s . 2

on application but did not pay the allotment money of

R s . 3

. If the company forfeited his entire shares, the forfeiture account will be credited by _____________.

Q. A company issued

5, 000

10

20 %

premium payable as follows: Application- Rs.

2

, allotment Rs.

5

(including premium) and first and Final Call Rs.

5

200

shares failed to pay the first and final call. His shares were forfeiture. Calculate the amount to be credited to share Forfeiture Account.

Q. D Ltd. issued 1,00,000 equity shares of Rs 10 each at a premium of Rs. 2 per share. The amount payable was Rs. 2 on application, Rs. 5 on allotment (including premium) & rest on first & final call. Applications were received for 1,20,000 shares. Excess application money was refunded to applications. All monies due were received except the allotment and first & final call monies on 1,000 shares. These shares were forfeited and reissued at Rs 9 per share.
On reissue of forfeited shares, balance of share forfeiture account transferred to capital reserve account will be _____.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Understanding Balance Sheet

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Numerical Example of Share Capital

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon