Question

One shareholder holding 500 equity shares paid share application money @ ₹ 3, Allotment money @ ₹ 4 per share and failed to pay a final call of ₹ 3 per share his share was forfeited calculate the amount of forfeiture.

Answer 1

Amount of forfeiture = Amount received by the company (In case of non-payment of ‘calls’)

Here, shareholders paid ₹ 3 per share on application and ₹ 4 per share on the allotment on 500 shares.

So, total amount received by company = 500 × ₹ 3 + 500 × ₹ 4

= 1,500 + 2,000

= ₹ 3,500

∴ Amount of share forfeiture = ₹ 3,500.