Read the following information about the company and answer the following question.
Subscribed and fully paid-up capital is 35,500 equity shares of ₹100 each.
Subscribed but not fully paid-up capital is 500 equity shares of ₹100 each fully called up on which ₹20 is unpaid.
Out of 500 shares, 200 shares are forfeited.
What will be the balance of share forfeiture A/c?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹16,000.
200 shares forfeited on which ₹20 was not received.
Face value of share = ₹100
Received value per share = 100- 20
= 80
So, ₹80 has been received.
Received amount = 200 x 80
= ₹16,000
Received amount is forfeited i.e. ₹16,000.