Question

If a share of ₹10 issued at a premium of ₹3 on which the full amount has been called and ₹8 (including premium) paid is forfeited the capital account should be debited with ______.

पर्याय

• ₹5

• ₹8

• ₹10

• ₹13

Answer 1

If a share of ₹10 issued at a premium of ₹3 on which the full amount has been called and ₹8 (including premium) paid is forfeited the capital account should be debited with ₹10.

Explanation:

Securities Premium received = ₹3

Share Capital, paid = ₹8 – ₹3 = ₹5

unpaid towards Share Capital = 10 – 5 = ₹5

Share Capital A/c is always debited with the called-up value of the share (not paid-up). Here, called-up on share capital = ₹10

Share Capital A/c Dr. ₹10