Abhay, a shareholder, failed to pay the money for second and final call of Rs. 20 on 1,000 shares issued to him at Rs. 120 (face value Rs. 100 per share). His shares were forfeited after the second call. Share capital A/c would be debited by:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 1,00,000
On forfeiture, Share Capital A/c is debited with the amount called up on the forfeited shares. The share capital account holds only the face value; the premium is not part of it.
The second and final call has been made, so the whole face value of Rs. 100 per share is called up
Share Capital A/c is debited = 1,000 shares × Rs. 100 = Rs. 1,00,000
The unpaid call of Rs. 20,000 is credited to Share Second and Final Call A/c, and the Rs. 80,000 already received to Share Forfeiture A/c
The premium of Rs. 20 per share was received earlier and stays in Securities Premium, so Rs. 1,20,000 (the issue price) is not the amount debited.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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