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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 ______.
Options
₹5
₹8
₹10
₹13
MCQ
Fill in the Blanks
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Solution
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
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.205]
