If a share of ₹100 on which ₹80 was called up and ₹70 paid up was forfeited. State the amount with which share capital account will be debited:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹80
On forfeiture, Share Capital is debited with the amount called up on the share, because only the called-up amount had been credited to Share Capital. The ₹20 not yet called was never recorded.
Share Capital debited = ₹80 (called up)
Credited to the unpaid call = ₹80 − ₹70 = ₹10
Credited to Share Forfeiture = ₹70 (paid up)
₹100 is the face value, ₹70 is the amount forfeited and ₹10 the call in arrears; none of them is the debit to Share Capital.
NCERT (2026-27 edition):
|
