Question

Total amount of ‘Subscribed and fully paid-up’ capital will be:

• A. 5,00,00,000
• B. 49,50,000
• C. 50,00,000
• D. 49,90,000

Hint:

Forfeited shares are treated as fully paid-up while calculating “Subscribed and Fully Paid-Up Capital.”

Answer 1

The Correct Option is C

All 5,00,000 shares were subscribed. Full amount of 10 per share (face value) was called up, so: \[ 5,00,000 \times 10 = 50,00,000 \] Although Bhola did not pay all calls, this amount was forfeited, meaning these shares are no longer outstanding. So, they are considered fully paid from the company’s point of view.