Question

When shares are forfeited, share capital account is ________. (Fill in the blank by choosing correct option)
(a) debited
(b) credited
(c) adjusted
(d) none of these

Answer 1

a) Debited
I hope my answer help to u and right

Answer 2

Answer:

The correct answer to the given question is option (a) debited

Explanation:

When the shares are forfeited, the share capital account is debited with paid-up capital of shares forfeited.

When the owner of a company fails to meet the purchase requirements, the shares lost are known as forfeited shares. The shares of a member or shareholder can be forfeited by this process.

Forfeiture of shares is possible only if the articles of association of a company allows it.