Question

when share are forfeited the share capital account in debited with C alled up capital of share for feited and the share forfeiture account is credited with call in arrear of share forfeited (true or false with reason).​

Answer 1

Answer:

The company debits the Share Capital Account with the amount called-up up to the date of forfeiture on shares. It credits the Shares Allotment Amount or Shares Call Account with amount called-up on forfeited shares but due from the shareholders.