Question

Y Ltd. forfeited 50 shares of Rs 100 each issued at 10% premium on which allotment money of Rs 30 per share (including premium) and first call of Rs 30 per share were not received and the second and final call of Rs 20 per share was not yet called. 20 of these shares as Rs 80 paid up for Rs 70 per share.
On re-issue, the Share Capital Account will be ___________________.

• A. Debited with Rs 1,600
• B. Credited with Rs 1,600
• C. Debited with Rs 4,000
• D. Credited with Rs 1400

Answer 1

The correct option is B Credited with Rs 1,600

When shares are reissued the share capital is credited with a certain amount

$ShareCapitalAmountonreissue=No.ofsharesreissued\times reissueprice$

Substitute the values in above equation

$ShareCapitalAmountonreissue=20shares\times Rs80=Rs1,600$.