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Standard XII
Accountancy
Forfeiture of Shares-Issued at Par
In case of fo...
Question

In case of forfeiture of shares, received part of the share capital is linked with _______________.


A

Share Forfeiture A/c

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B

Calls in Arrear A/c

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C

Share Capital A/c

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D

Bank A/c

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Solution

The correct option is A

Share Forfeiture A/c


In case of forfeiture of shares, received part of the share capital is linked with share forfeiture account.


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Q. In case of forfeiture of shares, received part of the share capital is linked with account.
Q.

In case of forfeiture of shares, not received part of the share capital is linked with ____________________


Q. DateParticularsL.F.Debit (₹)Credit (₹)Share Capital A/c Dr. (i)–––Securities Premium A/c Dr. 4,000 To Share Forfeiture A/c 8,000 To Calls in Arrears A/c 14,000( _____ shares forfeited for non-payment of ₹ _(ii)___ including premium of ₹2 per share) –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Bank A/c Dr. (iii)––––Shares Forfeiture A/c Dr. (iv)–––– To Share Capital A/c (v)––––( _______ shares reissued at ₹9 per share, fully paid at ₹10 per share) ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Share Forfeiture A/c Dr. 1,400 To Capital Reserve A/c 1,400(Net gain on reissued shares transferred to capital reserve)
Note: Face value of shares is ₹10 each.
(i) On forfeiture, the share capital account was debited with:

[2 marks]

Q. DateParticularsL.F.Debit (₹)Credit (₹)Share Capital A/c Dr. (i)–––Securities Premium A/c Dr. 4,000 To Share Forfeiture A/c 8,000 To Calls in Arrears A/c 14,000( _____ shares forfeited for non-payment of ₹ _(ii)___ including premium of ₹2 per share) –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Bank A/c Dr. (iii)––––Shares Forfeiture A/c Dr. (iv)–––– To Share Capital A/c (v)––––( _______ shares reissued at ₹9 per share, fully paid at ₹10 per share) ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––Share Forfeiture A/c Dr. 1,400 To Capital Reserve A/c 1,400(Net gain on reissued shares transferred to capital reserve)

Note: Face value of shares is ₹10 each.

(iv) On reissue of shares, share forfeiture account is debited with:

[2 marks]

Q. At the time of forfeiture of shares which were originally issued at a discount, the accounting entry will be
I. A Debit Share capital account with the called-up value of shares forfeited.
II. A Credit Share forfeiture account with the amount received on forfeited shares.
III. A Credit Discount on issue of shares with the amount of discount allowed on forfeited shares,
IV. A Credit Calls-in-arrears with the amount due but not paid on forfeited shares.
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Standard XII Accountancy
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