CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Allotment of Shares

When shares a...

Question

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

[0.88 marks]

A

Face value of shares

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Market value of shares

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Paid-up value of shares

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Called-up value of shares

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Called-up value of shares
Share capital account represents the liability of the company because it is an amount borrowed from the public. Therefore, at the time of forfeiture of shares, it is debited with a called-up amount.

Suggest Corrections

thumbs-up

1

Similar questions

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

Q. If a share of ₹100 on which ₹75 has been called and ₹55 is paid is forfeited, the share capital account should be debited with:

[0.88 marks]

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

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

Q. Sumona Ltd. re-issued 3,000 shares of ₹10 each which were forfeited by crediting share forfeiture account by ₹4,500. These shares were re-issued at ₹9 per share. The amount transferred to capital reserve will be:

[0.88 marks]

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Issue of Shares

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Allotment of Shares

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon