Test paper issue of shares

Q1 what is the minimum price the company can reissue its forfeited shares which were originally
issued at par.? [2]

Q2

[4]

Q3 X ltd issued for subscription 1,00,000 equity shares of Rs 10 each at a premium of rs 5 per share

App =Rs 5

On Allotment =Rs 7(inc premium_)

On first and final call=Rs 3

Application money were received on 1,50,000 shares. allotment was made on pro rata,money
overpaid was used due on allotment.

Suruchi who applied for 1,800 share failed to pay the allotment and the subsequent calls. her shares
were forfeited . two third of the forfeited shares were reissued to supriya as fully paid up at Rs 8 per
share .show the entries to record the above transaction. (8)

Ans 1 The minimum price at which the company should reissue it is the amount not received on the
forfeiture.
Ans2

Ans 3
Securities premium at the time of forfeiture is debited with Rs 5400 because out of the securities
premium to be received Rs 6,000 already received is Rs 600 ,so the A/c will be debited only with the
not received amount.

Calculation of the amount for the capital reserve

1200 shares =Rs 8400

Forfeiture amt on 800 =8400/1200x800=5,600

Less Discount on reissue =1,600

Capital reserve =Rs 4000