Question :
When shares are forfeited, Share Capital Account is debited with
Option 1: Nominal (face) value of shares
Option 2:
Called-up share capital
Option 3: Paid-up value of shares
Option 4: Market value of shares
Answer (1)
21st Jan, 2024
Correct Answer:
Called-up share capital
Solution : Answer = Called-up share capital
When shares are forfeited, the following entry will be passed:
Share Capital A/c Dr. with the called-up amount
To Share Forfeiture A/c with the amount received
To Calls-in-arrears A/c with the amount not received
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