Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

If XYZ Co. Ltd. forfeited 10 shares of Rs.10 each Rs.7 called up, Rs.5 paid on application, what will be the amount to be forfeited?

Options:

₹100

₹70

₹50

₹20

Correct Answer:

₹50

Explanation:

Share capital A/c Dr. 70
    To share forfeited 50
    To uncalled share 20