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Question
If 500 shares of ₹ 10 each, ₹ 9 called (including premium of ₹ 2) are forfeited due to non-payment of first call of ₹ 2 per share then Share Capital will be debited by ______.
Options
₹ 2,500.
₹ 3,500.
₹ 4,000.
₹ 5,000.
MCQ
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Solution
If 500 shares of ₹ 10 each, ₹ 9 called (including premium of ₹ 2) are forfeited due to non-payment of first call of ₹ 2 per share then Share Capital will be debited by ₹ 3,500.
Explanation:
₹ 9 called-up includes premium of ₹ 2. Therefore, the amount called-up towards Share Capital is:
₹ 9 − ₹ 2 = ₹ 7
500 × ₹ 7 = ₹ 3,500
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