HomeTestsSearchRankProfile
mediumMCQCUET Accountancy 2025 27 May Shift 22026Accountancy
1 mark

In the Journal Entry of forfeiture of shares issued at a premium, the Share Capital Account is:

  1. A
    Debited with the called up amount (including premium)
  2. B
    Debited with the face value amount (including premium)
  3. C
    Debited with the face value amount (excluding premium)
  4. D
    Debited with the called up amount (excluding premium)

Solution & Step-by-step Explanation

At the time of forfeiture of shares, the Share Capital Account is debited with the total called-up amount up to the point of cancellation, excluding any premium component. If the premium was called and paid, it remains untouched in the Securities Premium Account; if called but unpaid, it is separately debited to its own account. The Share Capital account itself never holds premium tracking values.

Practice this question

Try it yourself before checking the explanation above.

In the Journal Entry of forfeiture of shares issued at a premium, the Share Capital Account is:
A
Debited with the called up amount (including premium)
B
Debited with the face value amount (including premium)
C
Debited with the face value amount (excluding premium)
D
Debited with the called up amount (excluding premium)

Share This Question

Company AccountsShare CapitalForfeiture

Related Questions

easyMCQ

Which one of the following statements is true?

easyMCQ

Which of the following statements is not correct?

easyMCQ

Which one of the following statements is correct?

easyMCQ

The product formed by the reaction of an aldehyde with a primary amine is:

easyMCQ

Which part of the tobacco plant is infected by Meloidogyne incognita?

easyMCQ

The term ecosystem was coined by:

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Browse TestsLeaderboard

Discussion