If a share of Rs 10 on which Rs 8 has been called and Rs 6 is paid is forfeited, the Share Capital Account should be debited with which amount?

₹ 8 ₹ 6 ₹ 10 ₹ 2

₹ 8

Shares are issued at a face value against which a certain amount is called up. The called up amount is credited to share capital account. Once the shares are forfeited, a reversal entry need to be passed in books of account by debiting the share capital account by the amount of called up amount. Hence share capital account will be debited by ₹8.