Mr. Ramesh worked as a Lower division clerk in a state government office in the state of Telangana. He is very much interested in investing his savings in shares of limited companies. He applied for 300 shares from Reliance Industries ltd. He was allotted all shares. Due to some financial constraints he failed to pay the allotment money of ₹5( including premium of ₹2) and first and final call of ₹3. The company after giving due notices, forfeited all the shares of Rs10 each issued at a premium of ₹2. 1/3rd of the forfeited shares were reissued at 11 per share fully paid up to Mr. Ram
1. The total amount debited to share capital account while forfeiting the shares is
a. ₹2,500
b. ₹3,000
c. ₹4,000
d. ₹5,000
2. What entry will you pass to transfer forfeiture a/c to Capital reserve?
a. Share forfeiture a/cDr 400 To Capital reserve a/c 400
b. Share forfeiture a/f Dr 450 To Capital reserve a/c450
c. Share forfeiture a/c Dr 600 To Capital reserve a/c 600
d. Share forfeiture a/c Dr 360 To Capital reserve a/c 360
3. How much amount is received on reissue of forfeited shares?
a. ₹3,000
b. ₹3,300
c. ₹3,600
d. ₹1,100
4. How much amount is shown in the Balance sheet under share forfeiture account?
a. ₹800
b. ₹880
c. ₹400
d. ₹650
