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Commerce · Q1746

Accounting

Graduate and Post Graduate · Commerce · question 1746

Q1746

When shares are forfeited, the share capital account is debited with . . . . . . . . and the share forfeiture accountis credited with . . . . . . . .

A.
calls-in-arrear of shares forfeited, amount received on shares forfeited
B.
called-up capital of shares forfeited, amount received on shares forfeited
Answer
C.
called-up capital of shares forfeited, calls-in-arrear of shares forfeited
D.
paid-up capital of shares forfeited, called-up capital of shares forfeited

Answer: Option B

Solution

Answer: Option B
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