A company forfeited 1,000 shares of ₹50 face value, for non payment of allotment and final call money @ ₹15 and ₹20 respectively. Amount credited to share forfeiture Account:
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹15,000.
Number of shares forfeited = 1,000
Face value per share = ₹50
Allotment money not paid = ₹15 per share
Final call money not paid = ₹20 per share
Total amount paid by shareholder = 50 - 15 -20
= 15
When shares are forfeited, the amount credited to the Share Forfeiture Account is the total amount already paid by the shareholders.
Total amount paid by shareholders = (1,000 x ₹15)
= 15,000
So, the amount credited to share forfeiture is ₹15,000.