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mediumMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

When shares are forfeited, capital account is debited by:

  1. A
    forfeited amount
  2. B
    called up amount of shares
  3. C
    nominal value of shares
  4. D
    paid-up amount of shares

Solution & Step-by-step Explanation

On forfeiture of shares, the Share Capital account is cancelled by debiting it with the amount that had been called up on those shares till the date of forfeiture.

Practice this question

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When shares are forfeited, capital account is debited by:
A
forfeited amount
B
called up amount of shares
C
nominal value of shares
D
paid-up amount of shares

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