Question:
Meeta Ltd. invited applications for issuing 30,000 equity shares of \(₹10\) each. Applications for 29,500 shares were received. Allotment was made in full. A shareholder holding 100 shares failed to pay the first call of \(₹2\) per share. His shares were forfeited. The second call of \(₹3\) per share was not yet made. The amount debited to share capital account, on the forfeiture of shares will be :
Meeta Ltd. invited applications for issuing 30,000 equity shares of \(₹10\) each. Applications for 29,500 shares were received. Allotment was made in full. A shareholder holding 100 shares failed to pay the first call of \(₹2\) per share. His shares were forfeited. The second call of \(₹3\) per share was not yet made. The amount debited to share capital account, on the forfeiture of shares will be :
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Only called-up amount is debited to share capital on forfeiture.
Updated On: Jul 8, 2025
- \(₹3,00,000\)
- \(₹2,95,000\)
- \(₹700\)
- \(₹300\)
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The Correct Option is C
Solution and Explanation
Amount called up per share till forfeiture = \(10 – 3 = ₹7\)
Amount debited to capital account = \(100 \times 7 = ₹700\).
Amount debited to capital account = \(100 \times 7 = ₹700\).
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