Question

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

• A. the amount not paid by the defaulter to the company
• B. the amount not called up by the company
• C. the total amount that is called by the company so far
• D. None of these

Answer 1

The correct option is C

the total amount that is called by the company so far

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