R.Ltd invited applications for 15,000 shares of ₹10 each at premium of ₹2 per share. The amount was payable as follows:
On Application ₹4, On allotment ₹5
On Ist call ₹2, and on final call ₹1
Applications were received for 20,000 shares. Application of 2,000 shares were rejected. Mohan, who applied for 3,000 shares was allotted in full and prorata allotment was made to the remaining applicants. All money was fully received with the exception of first call and final call on 3,000 shares held by Hari. These shares were forfeited and subsequently re-issued @ ₹8 per share.
On the basis of the above information answer the question.
Calculate amount received on re-issue of shares
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹24,000
Hari's 3,000 forfeited shares are re-issued at ₹8 each:
Amount received on re-issue = 3,000 × ₹8 = ₹24,000
The discount of ₹2 a share (₹6,000) is debited to Share Forfeiture Account, leaving ₹21,000 − ₹6,000 = ₹15,000 as the gain transferred to Capital Reserve.