In a Journal Entry of Forfeiture of Shares, Securities Premium Account may be debited, when :-
- AShare are issued at premium and calls in arrears include premium.
- BShare are issued at premium and calls in arrears do not include premium.
- CShares are issued at par and calls in arrears include premium.
- DShare are issued at par and calls in arrears do not include premium.
Solution & Step-by-step Explanation
According to section 52 of the Companies Act, 2013, if the securities premium amount has already been received on shares being forfeited, it cannot be canceled or debited. It is only debited at the time of forfeiture if the shares were issued at a premium and that premium amount has not been received by the company (i.e., it remains included in the calls in arrears).