If a Share of Rs. 10 on which Rs. 8 is called-up and Rs. 6 is paid is forfeited. By what amount the Share Capital account will be debited at the time of forfeiture:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 8
On forfeiture, every entry made so far for the forfeited share is reversed. Share Capital Account was credited only with the amount called up, so it is debited with the called-up amount, not the face value and not the amount paid.
Called up per share = Rs. 8, so Share Capital A/c is debited with Rs. 8
Paid Rs. 6 is credited to Share Forfeiture A/c
Unpaid Rs. 2 (Rs. 8 − Rs. 6) is credited to the unpaid call (or Calls in Arrears) account
The face value of Rs. 10 is not debited, because Rs. 2 of it has not been called up and was never credited to Share Capital.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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