If a share of Rs. 100 issued at a discount of Rs. 5 of which full amount has been called up is forfeited for nonpayment of final call of Rs. 20, the share capital account will be debited by

Solution (By Examveda Team)

When a share is forfeited, we need to reverse the entries made when the share was originally issued.
Share Capital Account is originally credited when shares are issued.
Therefore, on forfeiture, we need to debit the Share Capital Account.
The amount to be debited is the called-up capital on the forfeited shares.
In this case, the face value of the share is Rs. 100, and the full amount has been called up.
Even though the share was issued at a discount, the called-up amount is still based on the face value.
The non-payment of the final call of Rs. 20 doesn't change the fact that the full Rs. 100 has been called up.
Therefore, the Share Capital Account will be debited by Rs. 100.
So, the correct answer is Option B: Rs. 100