A company forfeited 400 shares of ₹20 each ₹15 called up, on which application and allotment money of ₹11 per share has been received. How much amount is not received that is called up by the company?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹1,600.
Called up amount = 400 X 15
= ₹6,000
Paid up amount = 400 X 11
= ₹4,400
Amount not paid by the shareholders = 400 X 4
= ₹1,600
Journal entry on forfeiture of shares-
Share Capital A/c Dr. ₹6,000(400 x 15)
To Share Forfeiture A/c ₹4,400 (400 x 11)
To Share first Call A/c ₹1,600 ( 400 x 4)