X Limited forfeited a share of Rs. 10 on which Rs. 8 is called-up and Rs. 6 is paid and forfeited. By what amount, share capital account will be debited?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 8
On forfeiture, every entry made for the forfeited share is reversed. So Share Capital Account is debited with the called-up amount of the share, because that is the amount credited to Share Capital so far; the amount not yet called up was never recorded.
Called-up per share = Rs. 8, so Share Capital A/c is debited with Rs. 8
Paid Rs. 6 is credited to Share Forfeiture A/c
Unpaid Rs. 2 (Rs. 8 − Rs. 6) is credited to the unpaid calls account
The face value of Rs. 10 is not debited, since only Rs. 8 of it had been called up.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
Answers to Test your Understanding
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