Accountancy Part AAccounting for Shares

If the premium amount has not been received, in respect of the shares…

If the premium amount has not been received, in respect of the shares forfeited, the Securities Premium Reserve Account.........

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Will be debited at the time of forfeiture

NCERT (2026-27 edition):
Forfeiture of Shares issued at a Premium – “… In case, however, if the premium amount has not been received, either wholly or partially, in respect of the shares forfeited, the Securities Premium Reserve Account will also be debited with the amount of premium not received along with the Share Capital Account at the time forfeiture.”