Question:medium

Xeno Ltd. issued 25,000 equity shares of \rupee10 each. The amount was payable as follows: \begin{itemize On Application – \rupee4 per share On Allotment – \rupee5 per share On First and Final Call – Balance All the shares offered were applied for and allotted. All the money due on allotment was received except on 1,500 shares. These shares were forfeited immediately after allotment. First and final call was not yet made. At the time of forfeiture, Share Capital Account will be debited by: }

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In share forfeiture, the Share Capital Account is debited by the called-up amount on forfeited shares.
Updated On: Jan 13, 2026
  • \rupee15,000
  • \rupee24,000
  • \rupee13,500
  • \rupee18,000
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The Correct Option is A

Solution and Explanation

Each share has a face value of ₹10. Shares are forfeited if the holder defaults on allotment money payment. The Share Capital Account is credited with the total application money plus the allotment money received. For 1,500 shares: ₹10 (face value) × 1,500 = ₹15,000.
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