If shares are forfeited, share capital account is debited with _________________.
A
the face value of shares.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
the called up value of shares.
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
the paid up value of shares.
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
None of the above
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is B the called up value of shares. The company debits the Share Capital Account with the amount called-up up to the date of forfeiture on shares. It credits the Shares Allotment Amount or Shares Call Account with amount called-up on forfeited shares but due from the shareholders.