Question : Share Capital Account is debited with which amount at the time of forfieture of shares?
Option 1: the amount of face value of the shares
Option 2: the amount called up on the shares forfeited till the date of forfeiture
Option 3: paid-up value of shares as on the date of forfeiture
Option 4: market value of the shares as on the date of forfeiture of shares
Correct Answer: the amount called up on the shares forfeited till the date of forfeiture
Solution : Shares that have been forfeited are canceled. If calls are not paid when they are due, shares are canceled. The amount called up on the shares forfeited up until the date of forfeiture is debited from the share capital account. Hence, the correct option is 2.
Question :
When shares are forfeited, Share Capital Account is debited with
Option 1: Nominal (face) value of shares
Option 2:
Called-up share capital
Option 3: Paid-up value of shares
Option 4: Market value of shares
Question : The forfeited amount on shares not yet reissued is shown in the Balance Sheet as an addition to the:
Option 1: Reserves and Surplus
Option 2: Called Up Capital
Option 3: Authorised Share Capital
Option 4: Paid up Share Capital
Question : Vibhuti Ltd. Forfeited 40 shares of Rs. 10 each, Rs. 8 called up, on which Jhanvi had paid application and allotment money of Rs. 5 per share, 15 shares were reissued to Parker as fully paid up for Rs. 6 per share.
What is the balance in the share Forfeiture Account after the relevant amount has been transferred to Capital Reserve Account?
Option 1: Rs 0
Option 2: Rs 5
Option 3: Rs 25
Option 4: Rs 125
Question : KBC Ltd. forfeited 2,000 shares of Rs. 10 each (which were issued at par) held by Naresh for non–payment of allotment money of Rs. 4 per share. The called-up value per share was Rs. 9. On forfeiture, the amount debited to shares capital will be:
Option 1: Rs. 10,000
Option 2: Rs. 8,000
Option 3: Rs. 2,000
Option 4: Rs. 18,000
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