Question

Whenever securities premium is not received and the shares are forfeited, what will be the treatment in Calls in Arrear A/c?

• A. Calls in Arrear A/c will be debited with the corresponding premium amount.
• B. Calls in Arrear A/c will be credited with the corresponding premium amount.
• C. Calls in Arrear A/c will have no treatment
• D. None of these

Answer 1

The correct option is B

Calls in Arrear A/c will be credited with the corresponding premium amount.

Whenever securities premium is not received and the shares are forfeited, calls in arrears account will be credited with the corresponding premium amount.