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Home Questions Q5DZMPJK9C
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

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.

Options:

A-I, B-II, C-IV, D-III

A-II, B-I, C-III, D-IV

A-III, B-I, C-IV, D-II

A-I, B-III, C-IV, D-II

Correct Answer:

A-III, B-I, C-IV, D-II

Explanation:

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)

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