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Question
If a share of ₹10 issued at a premium of ₹1 on which ₹9 (including premium) have been called and ₹7 including premium is paid is forfeited, the capital account should be debited by ______.
Options
₹10
₹7
₹8
₹9
MCQ
Fill in the Blanks
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Solution
If a share of ₹10 issued at a premium of ₹1 on which ₹9 (including premium) have been called and ₹7 including premium is paid is forfeited, the capital account should be debited by ₹8.
Explanation:
Out of ₹9 called-up, ₹1 is premium, so called-up towards Share Capital = ₹8
Out of ₹7 paid, ₹1 is premium, so paid towards Share Capital = ₹6
Unpaid towards Share Capital = ₹8 – ₹6 = ₹2
Called-up on share capital = ₹8
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.205]
