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Question
In case the shares have been issued at a premium and the amount of premium has been received, then at the time of forfeiture of such shares _______________________.
In case the shares have been issued at a premium and the amount of premium has been received, then at the time of forfeiture of such shares _______________________.
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Solution
The correct option is A Securities premium account should be debited
Share Capital A/c ….Dr. (With amt., called up on forfeited shares excluding premium)
Securities Premium Reserve A/c ….Dr. (With premium amount)
To Share forfeiture A/c (With amt., received on forfeited shares)
To Calls-in-arrears A/c (With amt., not received on forfeited shares)
Share Capital A/c ….Dr. (With amt., called up on forfeited shares excluding premium)
Securities Premium Reserve A/c ….Dr. (With premium amount)
To Share forfeiture A/c (With amt., received on forfeited shares)
To Calls-in-arrears A/c (With amt., not received on forfeited shares)
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