Question : A company forfeited the following shares:
200 shares of Rs. 10 each forfeited, called up Rs. 9 per share, paid up Rs. 7 per share. Journal entry for forfeiture will be:
Option 1: Share Capital Alc Dr 2,000
To Share Forfeiture A/c 200
To Calls in Arrears A/c 1,800
Option 2: Share Capital Alc Dr. 2000
To Share Forfeiture A/c 1,800
To Calls in Arrears A/c 200
Option 3: Share Capital A/c Dr 1,800
To Share Forfeiture A/c 1,400
To call in arrears A/c 400
Option 4: Share Capital A/c Dr 1,800
To Share Forfeiture A/c 400
To Calls in Arrears A/c 1,400
Correct Answer: Share Capital A/c Dr 1,800
Solution : Answer = S hare Capital A/c Dr 1,800
Share capital account will be debited by the number of shares X called up money and Share forfeited account credited by the number of shares X paid up and call in arrear is credited by unpaid amount. Hence, the correct option is 3.
Question : A shareholder allotted to whom 450 shares of Rs. 10 per share failed to pay the first & final of Rs. 2 per share. Rs. 900 to be recorded in the books of a company with_____________.
Question : A company forfeited 700 shares of Rs. 10 each, on which only Rs. 5 per share was paid. Of these 200 shares were re-issued at Rs. 9 per share. Amount from share forfeiture account to capital reserve will be transferred-
Question : A shareholder failed to pay share allotment money on 10,000 shares @ Rs. 30 per share. Which one of the following account will be taken into account?
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