Question

When shares are forfeited, the share capital A/c is debited with _________ and the share forfeiture A/c is credited with___________ (a) Paid-up capital of shares Forfeited ; called up capital of shares forfeited (b) Called up capital of shares Forfeited; calls in arrear of shares forfeited (c) Called up capital of shares Forfeited; Amount received on shares forfeited (d) Calls in arrears of shares Forfeited; Amount received on shares forfeited

Answer 1

Hello Friend

ans

Option.D

Thank you

Answer 2

Concept Introduction: Accountancy is taught to accountants of businessmen.

Explanation:

We have been Given:

When shares are forfeited, the share capital A/c is debited with _________ and the share forfeiture A/c is credited with___________.

1. Paid-up capital of shares Forfeited ; called up capital of shares forfeited
2. Called up capital of shares Forfeited; calls in arrear of shares forfeited
3. Called up capital of shares Forfeited; Amount received on shares forfeited
4. Calls in arrears of shares Forfeited; Amount received on shares forfeited

We have to Find: Fill in the blanks with appropriate words in the options.

The correct option is Option No. 4, Calls in arrears of shares Forfeited; Amount received on shares forfeited.

Final Answer:

When Shares are forfeited, the share capital A/C is debited with Calls in arrears of shares Forfeited and the share forfeiture A/C is credited with Amount received on shares Forfeited.

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