Question

At the time of forfeiture of shares, ‘Share Capital Account’ is debited with ______.

पर्याय

• Paid-up amount on forfeited shares

• Called-up amount on forfeited shares

• Face value of shares forfeited

• Unpaid amount on forfeited shares

Answer 1

At the time of forfeiture of shares, ‘Share Capital Account’ is debited with called-up amount on forfeited shares.

Explanation:

The Share Capital Account is originally credited every time an instalment call is made. To reverse and cancel those specific requests, you must debit the account with the total called-up value of those shares, not their full face value (unless the shares were fully called up).