Answer questions on the basis of following case study.

Banjara Ltd. invited applications for 30,000 Shares of ₹100 each at a premium of ₹20 per share payable as follows:
On Application ₹40 (including ₹10 premium)
On Allotment ₹30 (including ₹10 premium)
On First Call ₹30
On Second and Final Call ₹20

Applications were received for 40,000 shares and pro-rata allotment was made on the application for 35,000 share. Excess application money was utilised towards allotment. Astha to whom 600 shares were allotted failed to pay the allotment money and her shares were forfeited immediately after allotment. Rekha who applied for 1,050 shares failed to pay first call and her shares were forfeited immediately after first Call. Second and final call was made. All the money due on second call have been received. Of the shares forfeited, 1,000 share were reissued as fully paid-up for ₹80 per share, which included the whole of Astha's shares.

Calculate the Amount to be transferred to the share forfeiture account on Astha shares.

₹22,000

The correct answer is Option (1) → ₹22,000.

Issued shares = 30,000
Prorata made on = 35,000

ASTHA SHARES

Shares allotted to Astha = 600
Shares applied by Astha = 600 x 35,000/30,000
                                       = 700

Excess amount received on application = 100 x 40
                                                              = ₹4,000

This ₹4,000 is adjusted against allotment.

Money due on allotment = 600 x 30
                                       = ₹18,000

Money not received on allotment = Money due - Excess Money adjusted of application
                                                    = 18,000 - 4,000
                                                    = 14,000

Entry on forfeiture of Astha shares-
Share Capital A/c Dr.           30,000 (600 x 50)
Securities premium A/c Dr.   6,000 (600 x 10)
     To Share allotment A/c       14,000 (Amount not received)
     To Share forfeiture A/c        22,000 (Amount received)

Thus, 22,000 is transferred to share forfeiture account on Astha shares.