A company forfeited 1,000 shares of ₹10 each (which were issued at par) held by Saurabh for non-payment of allotment money of ₹4 per share. The called-up value per share was ₹8. On forfeiture, the amount debited to share
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
A company forfeited 1,000 shares of ₹10 each (which were issued at par) held by Saurabh for non-payment of allotment money of ₹4 per share. The called-up value per share was ₹8. On forfeiture, the amount debited to share capital account will be —
Answer & Explanation:
Correct Answer: Option (B)
Correct answer: (B) ₹8,000. The called-up capital of 1,000×8 = 8,000 is debited on forfeiture.
Topics: Fundamentals of Accounting and Auditing
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