HSC Arts 12th Board ExamMaharashtra State Board
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Solution for When Shares Are Forfeited, Share Capital Account is _____________. - HSC Arts 12th Board Exam - Book Keeping and Accountancy

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Question

When shares are forfeited, share capital account is _____________.

a. debited

b. credited

c. adjusted

d. none of the above

Solution

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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APPEARS IN

 2017-2018 (March) (with solutions)
Question 1.3.1 | 1.00 mark
 2013-2014 (March) (with solutions)
Question 1.3.1 | 1.00 mark
Solution When Shares Are Forfeited, Share Capital Account is _____________. Concept: Accounting Treatment of Forfeiture and Re-issue of Share.
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