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Standard XII
Accountancy
Forfeiture of Shares
X, a sharehol...
Question

X, a shareholder, holding 100 shares of Rs 10 each has paid application money of Rs 2 per share and allotment money of Rs 3 per share, but has failed to pay the first call of Rs 2 per share and second call of Rs 3 per share. His shares were forfeited. What is amount paid up on these shares?


A

None of these

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B

Rs 300

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C

Rs 200

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D

Rs 500

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Solution

The correct option is D

Rs 500


Amount paid up = No. of shares × paid up per share
= 100 x Rs. (2+3)
= 100 x Rs. 5
= Rs. 500.


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