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Question
A company forfeited 400 shares of ₹ 10 each, ₹ 8 per share called-up for non-payment of first call of ₹ 2 per share. On forfeiture of these shares, 'Share Capital' Account will be debited with ______.
Options
₹ 4,000.
₹ 800.
₹ 3,200.
₹ 2,000
MCQ
Fill in the Blanks
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Solution
A company forfeited 400 shares of ₹ 10 each, ₹ 8 per share called-up for non-payment of first call of ₹ 2 per share. On forfeiture of these shares, 'Share Capital' Account will be debited with ₹ 3,200.
Explanation:
Share Capital Account is debited with the called-up amount on forfeited shares.
400 × ₹ 8 = ₹ 3,200
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