Multiple choice

A Ltd. forfeited 50 shares of Rs. 100 each issued at 10% premium on which allotment money of Rs. 30 per share (including premium) and first call of Rs. 30 per share were not received, the second and final call of Rs. 20 per share was not yet called. If 20 of these shares were re - issued as Rs. 80 paid - up for Rs. 90 per share, the Profit on re - issue is -

  1. Rs. 1, 500

  2. Rs. 600

  3. Rs. 900

  4. Rs. 400
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Balance in Share forefeiture for 50 shares      =Rs 1500 (50*30) Balance in Share forefeiture for 20 shares      =Rs 600 [(20/50)*1500]Adjusted towards share capital                         =Rs 200(20*10)

Profit on re-issue w.r.t 20 shares                    =Rs 400 (600-200) 

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