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?

₹7,800

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