Multiple choice

Anju Ltd. forfeited 300 equity shares of Rs. 10 each fully called-up, held by Manju for non-payment of final call @ Rs. 4 each. However, she paid application money @ Rs. 2 per share and allotment money @ Rs. 4 per share. These shares were originally issued at par. The amount to be credited to share forfeiture account will be

  1. Rs. 1,200

  2. Rs. 3,000

  3. Rs. 4,200

  4. Rs. 1,800
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Manju paid Rs. 2 (application) + Rs. 4 (allotment) = Rs. 6 per share before forfeiture. For 300 shares, amount forfeited = 300 × Rs. 6 = Rs. 1,800. This is credited to Share Forfeiture Account as it represents the amount paid by shareholders that the company keeps.

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