600 shares of ₹20 each were forfeited for non payment of ₹2 per share on first call and ₹5 per share on final call. Share forfeiture account will be credited with how much amount?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹7,800.
Issued shares = 600
Total amount on shares = 600 x 20
= 12,000
Non payment of First call = 600 x 2
= 1,200
Non payment of Final Call = 600 x 5
= 3,000
Total amount not received = 1,200+ 3,000
= 4,200
Therefore, amount forfeited is received amount.
Received amount = 12,000 - 4,200
= 7,800