Question

If a Share of Rs. 10 on which Rs. 8 is called-up and Rs. 6 is paid as forfeited. State with what amount the Share Capital account will be debited.

Answer 1

Number of Shares Forfeited = 1

Called-up value per share = Rs. 8

Debit to Share Capital Account = Number of Shares forfeited × Called-up value per share

Debit Amount = 1 × Rs. 8

= Rs. 8

The Share Capital account will be debited with Rs. 8.