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 except 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 transferred to Share Forfeiture Account.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹20,000
On forfeiture, the share forfeiture account is credited with the amount already received on the forfeited shares.
Rahul paid only the application money of ₹4 per share.
Amount forfeited = 5,000 × ₹4 = ₹20,000
The unpaid allotment money of 5,000 × ₹3 = ₹15,000 is credited to Share Allotment Account, and Share Capital Account is debited with the called-up amount of 5,000 × ₹7 = ₹35,000.
NCERT (2026-27 edition): |