A share of Rs. 10 issued at 2 ruppes premium on which full amount is called is forfeited due to non-payment of Rs. 4. What will be amount recorded in share capital account

Rs. 12
Rs. 10
Rs. 8
Rs. 6

The correct answer is C. Rs. 8.

When a share is issued at a premium, the amount received by the company is the face value of the share plus the premium. In this case, the face value of the share is Rs. 10 and the premium is Rs. 2, so the total amount received by the company is Rs. 12.

When a share is forfeited due to non-payment of the call money, the company can either reissue the share or retain it as forfeited shares. If the company reissues the share, it will receive the full amount of the call money. However, if the company retains the share as forfeited shares, it will only receive the amount of the call money that has already been paid.

In this case, the share is forfeited due to non-payment of Rs. 4, so the company will only receive Rs. 8. This amount will be recorded in the share capital account.

Option A is incorrect because it is the total amount received by the company when the share is issued.

Option B is incorrect because it is the face value of the share.

Option D is incorrect because it is the amount of the call money that has already been paid.

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