Question

A Company forfeited $20$ shares of $Rs.10$ each, $Rs.7$ called up, on which application money of $Rs.5$ per share was paid. The entry for forfeiture is ___________.

• A. Share Capital A/c Dr. Rs.100
  To Share Forfeited A/c Rs.140
• B. Share Capital A/c Dr. Rs.140
  To Share Application A/c Rs.140
• C. Share Capital A/c Dr. Rs.140
  To Share Forfeited A/c Rs.100
  To Calls-in-arrears A/c RS.40
• D. Share Capital A/c Dr. Rs.50
  To Share Allotment A/c Rs.50

Answer 1

The correct option is C Share Capital A/c Dr. Rs.140

To Share Forfeited A/c Rs.100
To Calls-in-arrears A/c RS.40

Forfeiture of Shares at Par, Discount and Premium (With Accounting Entries) .To forfeited shares a/c (with the amount paid by the member) ... (Being the forfeiture of 20 shares of Rs. 10 each, Rs. 7 per share called up, on account of application money Rs. 5.