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Question
If the Premium on the forfeited shares has already been received, then in the entry of forfeiture of shares Securities Premium A/c should be:
Options
Credited
Debited
No treatment
None of these
MCQ
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Solution
No treatment
Explanation:
If Securities Premium has already been received, it cannot be cancelled because that amount is rightly with the company. Therefore, in the forfeiture entry, no treatment is required for Securities Premium A/c.
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.205]
