A share having a face value of Rs. 12, on which Rs. 10 is called-up a…

The correct answer is Option (2) → 10

Forfeiture cancels the shares, so every entry made for the amount called up on them is reversed. Share Capital Account was credited only with the called-up amount, so it is debited with that same amount, not with the face value or the amount paid.

• Face value = Rs. 12 (Rs. 2 not yet called, so never credited to Share Capital)

• Called up = Rs. 10 → Share Capital A/c Dr. Rs. 10

• Paid = Rs. 8 → credited to Share Forfeiture A/c

• Unpaid call = Rs. 2 → credited to the call (or Calls in Arrears) account