Practicing Success
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: |
₹12,000 ₹7,200 ₹9,600 ₹4,800 |
₹9,600 |
The correct answer is Option (3) - ₹9,600. Journal entry on forfeiture of shares- Share Capital A/c Dr. 9600 (1200 x 8) Called up amount Share capital account is debited with the called up amount so called up amount is 9600. |