Question

Z Limited issued 20,000 shares of ₹100 each. The due amount was received except for 500 shares on which ₹75 per share was received. These 500 shares were forfeited and 300 shares were reissued for ₹60 each fully paid-up.
Balance in Forfeited Shares Account will be:

Options

• ₹15,000

• ₹37,500

• ₹22,500

• ₹10,500

Answer 1

₹15,000

Explanation:

Balance in Forfeited Shares Account will be the amount forfeited on unissued shares

= 200 Shares × ₹15 

= 15,000