X Ltd. forfeited 20 shares of Rs. 10 each on which Rs. 6 per share was paid. If out of these, 8 shares were reissued to Hari as fully paid on payment of Rs. 5.50 per share what would be the amount to the credit of share forfeited A/c:

[amp_mcq option1=”Rs. 48″ option2=”Rs. 72″ option3=”Rs. 84″ option4=”Rs. 120″ correct=”option1″]

The correct answer is A. Rs. 48.

Explanation:
The amount to the credit of share forfeited A/c is calculated as follows:

Shares forfeited = 20
Shares reissued = 8
Amount received on reissue = 8 * 5.50 = 44
Amount to the credit of share forfeited A/c = 20 * 6 – 44 = 48

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