Match List - I with List - II.List - I ||| List - II(A) Share forfeiture ||| (I) Cr. share capital(B) Shares reissued ||| (II) Dr. share capital(C) Excess application money refunded ||| (III) Dr. Bank A/c(D) Calls money received ||| (IV) Cr. Bank A/cChoose the correct answer from the options given below :
- A(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- B(A) - (II), (B) - (I), (C) - (IV), (D) - (III)
- C(A) - (II), (B) - (I), (C) - (III), (D) - (IV)
- D(A) - (IV), (B) - (I), (C) - (III), (D) - (II)
Solution & Step-by-step Explanation
(A) When shares are forfeited, the Share Capital account is debited (cancelled) (II).(B) When forfeited shares are reissued, the Share Capital account is credited (restored) (I).(C) Refunding excess application money results in an outflow of cash, so the Bank A/c is credited (IV).(D) Receiving call money increases bank balance, so the Bank A/c is debited (III).Correct Match: A-II, B-I, C-IV, D-III.