Question : March List-I with List-II.
List-I | List - II |
(Name of account to be debited or credited, when shares are forfeited) |
(Amount to be debited or credited) |
(A) Share Capital Account | (I) Debited with amount not received |
(B) Share Forfeited Account | (II) Credited with amount not received |
(C) Calls-in-arrears Account | (III) Credited with amount received towards share capital |
(D) Securities Premium Account | (IV) Debited with amount called up |
Choose the correct answer from the options given below:
Option 1: (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
Option 2: (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
Option 3: (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
Option 4: (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Correct Answer: (A) - (IV), (B) - (III), (C) - (II), (D) - (I)
Solution : Share capital account will be debited with amount called up. Share forfeited account will be credited with amount received towards share capital as it shows amount received till the time of forfeiture of shares. Calls-in-shares means amount not received. Securities premium account is debited with the amount not received at the time of forfeiture of shares. (A)-(IV), (B)-(III), (C)-(II), (D)-(I)