Question

The called-up value per share is Rs. 9. On forfeiture, the amount debited to Share Capital account is
Select one:
a. Rs. 20,000
b. Rs. 8,000
c. Rs. 18,000
d. Rs. 12,000​

Answer 1

Answer:

The company debits a certain amount to the share capital at the time of forfeiture of shares which is always the called up value. And the called up value is that amount which any company demands from its shareholders periodically every year.

The share capital is debited because the called up amount which the company was expecting from was shareholders has not been deposited and thus they have to reduce the capital balance by debiting share capital account.

On forfeiture, the amount debited to Share Capital account is 18000