Match List-I with List-II:List-I(A) The maximum amount of share capital which a company is authorized to issue is known as(B) Shares can be forfeited for(C) The profit on the reissue of forfeited shares is transferred to(D) Balance of share forfeiture account is shown in the balance sheet under the itemList-II(I) Capital reserve(II) Share capital(III) Nominal share capital(IV) Non-payment of call moneyChoose the correct answer from the options given below:
- A(A) - (I), (B) - (II), (C) - (III), (D) - (IV)
- B(A) - (III), (B) - (I), (C) - (III), (D) - (IV)
- C(A) - (I), (B) - (II), (C) - (IV), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Evaluating the pairs correctly:(A) The maximum amount of share capital authorized to issue is known as Nominal or Authorized share capital (III)(B) Shares are forfeited due to Non-payment of call money (IV)(C) The gain/profit on reissue of forfeited shares is a capital profit and is transferred to Capital reserve (I)(D) The remaining balance of the share forfeiture account is added to Share capital under the paid-up capital head in the balance sheet (II)Thus, the correct matching is (A) - (III), (B) - (IV), (C) - (I), (D) - (II).