shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2010 Dear Sir/Madam,

Gopal was holding 100 shares of Rs.10 each of a company on which he had paid Rs. 3 an applicaton and Rs.2 on allotment but could not pay Rs.2 on first call. directors forfeited the above share. Share capital will be debited by_____

ANS:500

How to calculate?

Tilak Agrawal

Tilak Agrawal (Expert)
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10 November 2010 Dear Student

Whenever Shares are alloted share capital account is credited by the company with amount actually received.

In your case amount actually received is Rs 500/- and hence while forfeiture the same amount is to be debited.

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