G.G. Ltd invited applications for issuing 10,000 as equity shares of 10 each at a premium of 4 per share. 5 (including 2 premium) was payable with application. 4 (including 2 premium) was payable with allotment and the balance was payable with first and final call. Applications for 12000 shares were received and allotment was made on prorate basis to all the applicants. Excess money received with applications was adjusted towards sums due on allotment. Kapil, to whom 500 shares were allotted, failed to pay the allotment amount and his shares were immediately forfeited. The amount fortified on Kapil’s shares was :

Correct option is C

The amount forfeited on Kapil's shares is calculated as follows:
· Kapil applied for 600 shares and paid ₹5 per share, totaling ₹3,000 in application money.
· He was allotted 500 shares on a pro-rata basis. The application money required for 500 shares is ₹2,500 (500 shares × ₹5 per share).
· The excess application money of ₹500 (₹3,000 - ₹2,500) was adjusted towards allotment.
· The allotment money due for 500 shares is ₹2,000 (500 shares × ₹4 per share). After adjusting the excess ₹500, the remaining allotment due is ₹1,500, which Kapil failed to pay.
· Upon forfeiture, the company forfeits the application money of ₹2,500 paid for the 500 shares. However, the excess application money of ₹500, which was adjusted towards allotment, is considered refundable since the allotment was not paid in cash. Therefore, the net amount forfeited is ₹2,500 - ₹500 = ₹2,000.
Thus, the amount forfeited on Kapil's shares is ₹2,000