Based on following answer the question.

Bharat Ltd. has been registered with the capital as ₹50,00,000 divided into 5,00,000 shares of ₹10 each. 3,00,000 shares of ₹10 each are offered by the company to the public for subscription, amount payable as ₹4 on application, ₹3 on allotment and the balance on call. The company received application for 2,70,000 shares and the company finalised the allotment accordingly. The company did not make the final call. The Company received all money excepts allotment money on 5,000 shares held by Rahul. His shares were forfeited.

Calculate the amount forfeited by the company related to Rahul's shares and hence referral to Forfeited Share Account.

₹20,000

The correct answer is Option (2) - ₹20,000

Shares held by Rahul = 5000
Application money = ₹4
Allotment money = ₹3
Call money = 10-4-3
                  = 3
Rahul did not pay allotment money means he had paid application money that was forfeited by the company.

Forfeited money = 5,000 shares x 4
                          = ₹20,000

Money not received = 5,000 x 3
                                = 15,000

The following journal entry is passed for forfeiture-
Share Capital A/c Dr. (5,000 x 7) ₹35,000 (Calledup amount)
   To Share Allotment A/c (5,000 x 3)  ₹15,000 (Not received amount)
   To Share forfeiture A/c (5,000 x 4)  ₹20,000 (Received amount)