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Forfeiture of Shares-Issued at Par

In case of fo...

Question

In case of forfeiture, we debit share capital account by the total amount by the company so far for the forfeited shares.

A

not received

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B

called up

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C

not called up

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D

received

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Solution

The correct option is B called up
The company debits the share capital account with the amount called-up up to the date of forfeiture of shares.

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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.

In case of forfeiture, we debit share capital account by which amount?

Q. A company forfeited

2000

10

each(which were issued at par) held by Mr. John for non-payment of allotment money of Rs.

4

per share. The called up value per share was Rs.

9

. On forfeiture, the amount debited to share capital will be ___________.

Q. A company forfeited

2, 000

10

9

which, were issued at par) held by A for non-payment of allotment money of Rs.

4

per share. The called up value per share was Rs.

9

. On forfeiture, the amount debited to share capital is?

Whenever securities premium is received and the shares are forfeited, what will be the treatment in Share Forfeiture A/c?

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