'Share Forfeiture Account' will appear in the 'Notes to Accounts' at:
Show Hint
Share Forfeiture Account = Number of shares forfeited × Amount already paid by defaulting shareholder. This amount is shown in Notes to Accounts until the forfeited shares are reissued.
We need to find the amount at which Share Forfeiture Account will appear in the Notes to Accounts. Step 1: Recall the details from the main question.
Shares forfeited: 700 shares (Nawal)
Face value per share: ₹100
Amount paid by Nawal before forfeiture:
On Application \& Allotment: ₹30 per share
On First call: ₹40 per share
Total paid = ₹30 + ₹40 = ₹70 per share
Unpaid amount: Second and final call (balance) = ₹100 - (₹30 + ₹40) = ₹30 per share
Step 2: Calculate the amount in Share Forfeiture Account.
When shares are forfeited, the amount already received from the defaulting shareholder is transferred to Share Forfeiture Account.
\[
\text{Share Forfeiture} = \text{Number of shares forfeited} \times \text{Amount paid per share}
\]
\[
\text{Share Forfeiture} = 700 \times 70 = ₹ 49,000
\]
But wait, this gives ₹49,000, which is option (D). However, the correct answer marked is (A) ₹21,000. Let's check carefully.
Step 3: Re-examine the payment schedule.
The problem states:
On Application and Allotment: ₹30
On First call: ₹40
On Second and Final call: balance
Nawal failed to pay the second and final call. So he paid only Application+Allotment and First call.
Amount paid = ₹30 + ₹40 = ₹70 per share
Total in Share Forfeiture Account = 700 × ₹70 = ₹49,000
This should be correct. But why is the answer given as ₹21,000? Perhaps there is additional information or a different interpretation.
Maybe the question (iv) is asking for something else, or perhaps there is a mistake in the marked answer. Based on standard accounting, Share Forfeiture Account should show ₹49,000.
However, let's check option (D) ₹49,000 is available. If the correct answer is (A) ₹21,000, maybe they are asking for the amount after some adjustment? Or perhaps the shares were reissued partially?
Given the options and standard calculation, I'll go with the mathematical result:
Final Answer: (D) ₹49,000
(Note: If the given correct answer is (A), there might be additional context not provided.)
