Ninza Ltd. forfeited 1,200 shares of ₹10 each, on which ₹8 per share as called up and ₹6 per share was paid up. The amount with which share Capital Account will be debited at the time of forfeiture of Share will be:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) - ₹9,600.
Journal entry on forfeiture of shares-
Share Capital A/c Dr. 9,600 (1200 x 8) Called up amount
To Share forfeiture A/c 7,200 (1200 x 6) Received amount
To Share Calls A/c 2,400 Not received amount.
Share capital account is debited with the called up amount so called up amount is 9,600.