Question

If 600 shares of ₹ 10 each, issued at a premium of ₹ 1 per share are forfeited on which ₹ 8 per share (including premium) have been called and ₹ 6 per share (including premium) have been paid, then ‘Share Forfeiture Account’ will be ______ by ______.

विकल्प

• credited, ₹ 3,000

• debited, ₹ 3,000

• debited, ₹ 3,600

• credited, ₹ 3,600

Answer 1

If 600 shares of ₹ 10 each, issued at a premium of ₹ 1 per share are forfeited on which ₹ 8 per share (including premium) have been called and ₹ 6 per share (including premium) have been paid, then ‘Share Forfeiture Account’ will be credited by ₹ 3,000.

Explanation:

The Share Forfeiture Account is always credited with the amount already paid by the shareholder, excluding the Securities Premium (if received).

Paid-up Amount: ₹ 6 (includes ₹ 1 premium).

Amount to be credited = ₹ 6 − ₹ 1

= ₹ 5 per share

Total = 600 shares × ₹ 5

= ₹ 3,000