Gopal held 100 shares of Rs. 10 each of a company on which he had paid Rs. 3 on the application and Rs. 2 on the allotment but could not pay Rs. 2 on the first call. The directors forfeited the above share. The share capital will be debited by

The correct answer is: C. Rs. 500

Explanation:

Gopal held 100 shares of Rs. 10 each of a company on which he had paid Rs. 3 on the application and Rs. 2 on the allotment but could not pay Rs. 2 on the first call. The directors forfeited the above share.

The share capital will be debited by the amount already paid by Gopal, i.e., Rs. (3 + 2) = Rs. 5 per share. Since Gopal held 100 shares, the share capital will be debited by Rs. 500.

Option A is incorrect because it is the total value of the shares. Option B is incorrect because it is the amount Gopal would have paid if he had paid the first call. Option D is incorrect because it is the total value of the shares minus the amount Gopal had already paid.