A company forfeited 300 shares of ₹10 each (₹9 called up) on which ₹4 of allotment and the first call of ₹2 has not been received. Out of these, 100 shares were re-issued as fully paid up for ₹9 per share. How much amount will be transferred to the share forfeiture account by the company?

₹900

The correct answer is option 4- ₹900.

Amount called up = 300 X 9 = ₹2,700
Amount forfeited = 300 X 3 = ₹900 (Received amount)

Journal entry in the case-
Share Capital A/c Dr. 2,700 (300 x 9)
    To Share forfeiture A/c        900 (300 x 3)
    To Share allotment A/c       1,200 (300 x 4)
    To Share First Call A/c         600 (300 x 2)

Thus, 900 is transferred to share forfeiture A/c.