Question

When shares are forfeited, the share capital a/c is debited by

(a) Paid –up capital

(b) Called – up amount

(c) Calls-in-arrear

(d) Nominal value of such shares​

Answer 1

Answer:

option b is crct

Explanation:

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.