If a share of ₹50, on which ₹40 is called-up and ₹35 is paid, is forfeited, then with what amount the share capital account will be debited?

₹40

The correct answer is option 2- ₹40.

Journal entry for forfeiture-

Share Capital A/c Dr. ₹40 (Calledup amount)
     To Share forfeiture A/c      ₹35 (paidup amount)
     To Share call A/c              ₹5 (Unpaid amount)

Share capital account is debited with called up amount so the answer is ₹40.