Amit, a shareholder holding 1,000 shares of Rs. 10 each, did not pay the allotment money of Rs. 4 per share (including a premium of Rs. 2) and the first and final call of Rs. 3. His shares were forfeited after the first and final call. The amount of Share Forfeiture A/c will be:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 5,000
On forfeiture, the Share Forfeiture A/c is credited with the amount actually received on the share capital. Premium that was called but not paid was never received, so it is reversed out of the Securities Premium account instead.
Called-up capital per share = Rs. 10
Unpaid capital per share = Rs. 2 (capital part of allotment) + Rs. 3 (first and final call) = Rs. 5
Received per share = Rs. 10 − Rs. 5 = Rs. 5 (the application money)
Share Forfeiture A/c = 1,000 × Rs. 5 = Rs. 5,000
The entry on forfeiture:
Share Capital A/c Dr. 10,000
Securities Premium A/c Dr. 2,000
To Share Allotment A/c 4,000
To Share First and Final Call A/c 3,000
To Share Forfeiture A/c 5,000
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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