The correct answer is A. Rs. 2,800.
Forfeited shares are shares that have been issued to shareholders but have not been paid for in full. When a share is forfeited, the company can either reissue it or cancel it. If the share is reissued, the new shareholder will not have to pay the call amount that was not paid by the original shareholder. If the share is cancelled, the company will write off the amount that was not paid as a loss.
In this case, X Co. Ltd. forfeited 1,000 shares of Rs. 10 each fully called up for non-payment of final call of Rs. 1 per share. This means that the company has written off Rs. 1,000 as a loss. However, 400 of the forfeited shares are reissued as fully paid at Rs. 8 per share. This means that the company has received Rs. 3,200 from the reissue of these shares. Therefore, the balance of the forfeited share account will be Rs. 2,800 (Rs. 1,000 – Rs. 3,200).
Option B is incorrect because it does not take into account the fact that 400 of the forfeited shares are reissued as fully paid. Option C is incorrect because it does not take into account the fact that the company has written off Rs. 1,000 as a loss. Option D is incorrect because it is the total amount of the forfeited shares, not the balance of the forfeited share account.