Directions: Choose the correct option for the given question:

XYZ Ltd. issued 10,000 shares of Rs. 100 each at Rs. 120 per share with Rs. 25 on application, Rs. 45 on allotment including premium, Rs. 20 on first call and Rs. 30 on final call. Govind, who held 200 shares did not pay any call money and his shares were forfeited. What is the amount to be credited to Share Forfeiture Account on forfeiture?

Govind paid Rs. 25 on application and Rs. 45 on allotment (including premium). Total amount paid before forfeiture = Rs. 25 + Rs. 45 = Rs. 70 per share. For 200 shares, total forfeiture amount = 200 × Rs. 70 = Rs. 14,000. However, the share forfeiture account is only credited with the amount actually received, which is Rs. 50 per share (Rs. 25 application + Rs. 25 allotment excluding premium). So 200 × Rs. 50 = Rs. 10,000. Wait, let me recalculate: Rs. 25 application + Rs. 45 allotment = Rs. 70 total received per share. Share Forfeiture Account is credited with the amount received from shareholders, which is Rs. 70 × 200 = Rs. 14,000. But the claimed answer is B (Rs. 10,000). Let me reconsider: If the share capital is Rs. 100 and premium is Rs. 20, then allotment of Rs. 45 includes Rs. 20 premium and Rs. 25 towards capital. So amount paid towards capital = Rs. 25 (application) + Rs. 25 (allotment capital portion) = Rs. 50. Share Forfeiture Account is credited with the amount forfeited, which would be Rs. 50 × 200 = Rs. 10,000.