ABC Ltd., forfeited 20 shares of Rs. 10 each on which Rs. 6 per share were paid. If out of these shares 8 shares were reissued to Hari as fully paid up on payment of Rs. 5.50 per share, the amount that will stand to the credit of Share Forfeited A/c will be

[amp_mcq option1=”Rs. 48″ option2=”Rs. 72″ option3=”Rs. 84″ option4=”Rs. 96″ correct=”option1″]

The correct answer is A. Rs. 48.

Explanation:
The amount received on reissue of 8 shares = 8 * 5.50 = Rs. 44.
The amount that will stand to the credit of Share Forfeited A/c = 20 * 6 – 44 = Rs. 48.

Option B is incorrect because it is the total amount received on reissue of 8 shares.
Option C is incorrect because it is the total amount received on forfeiture of 20 shares.
Option D is incorrect because it is the total amount received on reissue of 20 shares.