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    Question

    A company forfeited 200 shares of ₹10 each, on which

    ₹7 was called up and the shareholder had paid ₹4 per share. What amount will be credited to the Forfeited Shares Account?
    A ₹2,000 Correct Answer Incorrect Answer
    B ₹1,400 Correct Answer Incorrect Answer
    C ₹800 Correct Answer Incorrect Answer
    D ₹600 Correct Answer Incorrect Answer
    E ₹1,200 Correct Answer Incorrect Answer

    Solution

    The Forfeited Shares Account is credited with the actual amount received by the company towards the share capital.  Forfeited amount  = No. of shares forfeited x amount paid up = 200 𝑠ℎ𝑎𝑟𝑒𝑠 × Rs.4 = Rs. 800 . Note: The "Called-up" value (₹1,400) is debited to Share Capital, and the "Unpaid" value (₹600) is credited to Calls-in-Arrears. 

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