A shareholder holding 2500 shares of Rs. 10 each, did not pay the allotment money of Rs. 6 per share (including a premium of Rs. 2) and the first call of Rs.1 and final call of Rs. 2. Her shares were forfeited after the final call. What will be the amount of share forfeited account?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 7,500
On forfeiture, only the money actually received towards share capital is credited to Share Forfeited A/c. Any premium not received is not part of it. Here the shareholder paid only the application money.
Allotment of Rs. 6 = Rs. 4 share capital + Rs. 2 premium (unpaid)
Share capital unpaid per share = Rs. 4 + Rs. 1 + Rs. 2 = Rs. 7
Application money paid per share = Rs. 10 − Rs. 7 = Rs. 3
Share Forfeited A/c = 2,500 × Rs. 3 = Rs. 7,500
The unpaid premium of Rs. 2 is debited to Securities Premium Reserve on forfeiture, so it never reaches the forfeited amount.
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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