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easyMCQCUET Accountancy 2025 29 May Shift 22026Accountancy
1 mark

In a Journal Entry of Forfeiture of Shares, Share Capital Account will be :-

  1. A
    Debited by the issue price of the number of the shares forfeited.
  2. B
    Debited by the face value of the number of the shares forfeited.
  3. C
    Debited by the called up value of the number of the shares forfeited.
  4. D
    Credited by the issue price of the number of the shares forfeited.

Solution & Step-by-step Explanation

At the time of forfeiture of shares, the Share Capital Account is debited with the amount called up till the date of forfeiture for those specific shares.The rule is:

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In a Journal Entry of Forfeiture of Shares, Share Capital Account will be :-
A
Debited by the issue price of the number of the shares forfeited.
B
Debited by the face value of the number of the shares forfeited.
C
Debited by the called up value of the number of the shares forfeited.
D
Credited by the issue price of the number of the shares forfeited.

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