Match the following for the account that will be debited regarding shares.
| LIST 1 | LIST 2 |
| A) Shares forfeited at par | I) Bank A/c |
| B) Money received on allotment | II) Share forfeiture A/c |
| C) Money due on Shares issued at premium at first call | III) Share capital A/c |
| D) Share forfeiture balance transferred after reissue | IV) Share first call A/c |
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 3
The correct answer is option 3- A-III, B-I, C-IV, D-II.
| LIST 1 | LIST 2 |
| A) Shares forfeited at par | III) Share capital A/c |
| B) Money received on allotment | I) Bank A/c |
| C) Money due on Shares issued at premium at first call | IV) Share first call A/c |
| D) Share forfeiture balance transferred after reissue | II) Share forfeiture A/c |
* Forfeiture of Shares issued at Par:
Share Capital A/c..........(Called up amount) Dr.
To Share Forfeiture A/c...........(Paid up amount)
To Share Allotment A/c
To Share Calls A/c (individually)
* For Receipt of Allotment Money-
Bank A/c Dr.
To Share Allotment A/c
(Allotment money received on ...shares)
* Money due on Shares issued at premium at first call-
Share First Call A/c Dr.
To Share Capital A/c
To Securities premium A/c
* Share forfeiture balance transferred after reissue-
Share Forfeiture A/c Dr.
To Capital Reserve
(Profit on reissue of forfeited shares transferred)