Subscribed and not fully paid capital of Dharma Ltd. will be :

Q: Subscribed and not fully paid capital of Dharma Ltd. will be :

**Correct option: (D) Nil.** - 'Subscribed but not fully paid' would apply to shares that are still outstanding (not forfeited) but on which some call remains unpaid. - Since the directors have already **forfeited** the shares of both Aditi and Rohit, none of the partly-paid shares remain outstanding as 'subscribed but not fully paid' — they have moved out of subscribed capital altogether into the Share Forfeiture Account. - Therefore, subscribed and not fully paid capital = **Nil**.

Accounting for Share Capital

Subscribed but Not Fully Paid Capital after Forfeiture

Options

(A)Rs. 9,00,000

(B)Rs. 8,30,000

(C)Rs. 8,56,000

(D)Nil

Official Answer

Correct option: (D) Nil.

'Subscribed but not fully paid' would apply to shares that are still outstanding (not forfeited) but on which some call remains unpaid.
Since the directors have already forfeited the shares of both Aditi and Rohit, none of the partly-paid shares remain outstanding as 'subscribed but not fully paid' — they have moved out of subscribed capital altogether into the Share Forfeiture Account.
Therefore, subscribed and not fully paid capital = Nil.

subscribed but not fully paidshare forfeiturecalls in arrearssubscribed capital categoriesschedule III

Marking Scheme

11 mark for selecting (D) Nil, recognising that forfeiture removes the shares from the 'not fully paid' category.

Hint

Once shares are forfeited, they leave the 'subscribed but not fully paid' category entirely — check whether forfeiture has already happened before answering.

Quick Oral Answer

Since Aditi's and Rohit's partly-paid shares were forfeited, none remain as 'subscribed but not fully paid' — the answer is Nil.

Analysis & Explanation

This is the trickiest question in the series because students instinctively expect a non-zero figure for 'not fully paid' shares.

Why (D) is correct

Once shares are forfeited, they are removed entirely from the 'subscribed capital' classification (both fully-paid and not-fully-paid sub-categories); the money already paid on them sits separately in the Share Forfeiture Account (Q30) until reissue.
Since Aditi's and Rohit's shares (the only partly-paid ones) were already forfeited, no shares remain in the books as 'subscribed but not fully paid' — hence Nil.

Why the distractors are wrong

(A) Rs. 9,00,000 and (C) Rs. 8,56,000 would only apply if the shares had NOT been forfeited and calls were merely in arrears.
(B) Rs. 8,30,000 is actually the 'subscribed and fully paid' figure (Q28), the opposite category.

Common Mistakes

1Assuming 'not fully paid' automatically applies to Aditi's and Rohit's shares, without noticing they have already been forfeited and removed from this category.
2Confusing this category with the Share Forfeiture Account balance (Rs. 29,000), which is a different, separate line item.

Interesting Facts

This exact type of question — testing whether students realise forfeiture empties the 'not fully paid' category — is a favourite CBSE examiner trap in share capital case-based MCQs.

If the calls had merely been in arrears (no forfeiture), 'subscribed but not fully paid' would instead show the called-up value of those shares less calls-in-arrears, disclosed separately in the Notes to Accounts.

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Frequently Asked Questions

If the shares had not been forfeited, what would the answer be?

If calls were merely in arrears (no forfeiture), 'subscribed but not fully paid' would show the called-up value of the 7,000 partly-paid shares, i.e. Rs. 70,000 (7,000 × Rs. 10), less calls-in-arrears actually outstanding — but here, forfeiture has already occurred, making the answer Nil.