In the Journal Entry of forfeiture of sh

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

In the Journal Entry of forfeiture of shares issued at a premium, the Share Capital Account is:-

Options:

Debited with the called up amount (including premium)

Debited with the face value amount (including premium)

Debited with the face value amount (excluding premium)

Debited with the called up amount (excluding premium)

Correct Answer:

Debited with the called up amount (excluding premium)

Explanation:

The correct answer is Option (4) → Debited with the called up amount (excluding premium)