Question

. If a share of ₹ 10 on which ₹ 8 has been called and ₹ 6 is paid is forfeited the Capital Account should be debited with​

Answer 1

Answer:

Shares are issued at a face value against which a certain amount is called up. The called up amount is credited to share capital account.

Once the shares are forfeited, a reversal entry need to be passed in books of account by debiting the share capital account by the amount of called up amount.