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Numerical Example of Share Capital

When shares a...

Question

When shares are forfeited, share capital account is ___________.

A

Debited

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B

Credited

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C

Adjusted

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D

None of these

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Solution

The correct option is D Debited
When shares issued at par are forfeited the accounting treatment will be as follows: (i) Debit Share Capital Account with amount called up (whether received or not) per share up to the time of forfeiture.

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Q. When shares are forfeited, share capital account is debited by __________.

Q. When shares are forfeited, share capital account will be debited by:

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Q. When shares are forfeited, the share capital account is debited with _______ and the Share Forfeited Account is credited with ________.

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.

Q. If shares are forfeited, share capital account is debited with _________________.

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