When shares are forfeited, share capital account is _____________.
d. none of the above
When shares are forfeited, share capital account is debited.
Explanation: Share Capital Account represents the liability of the company as it is the amount that is borrowed from the public. Therefore, at the time of forfeiture of shares, it is debited with a called-up amount.
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Solution When Shares Are Forfeited, Share Capital Account is _____________. Concept: Accounting Treatment of Forfeiture and Re-issue of Share.