Accountancy Part AAccounting for Shares

Shares can be forfeited:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → For non-payment of call money

NCERT (2026-27 edition):
Test your Understanding – II

Extract from the NCERT textbook

NCERT (2026-27 edition):
Answers to Test your Understanding

Extract from the NCERT textbook

NCERT (2026-27 edition):
Forfeiture of Shares – “It may happen that some shareholders fail to pay one or more instalments, viz. allotment money and/or call money. In such circumstances, the company can forfeit their shares, i.e. cancel their allotment and treat the amount already received thereon as forfeited to the company within the framework of the provisions in its articles. These provisions are usually based on Table F which authorise the directors to forefeit the shares for non-payment of calls made.”