Practicing Success

Register
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions WEKQQCW6ZY
Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

Match List I with List II

List I
(Name of account to be debited or credited, when shares are forfeited)
 List II
(Amount to be debited or credited)
A. Share Capital Account I. Debited with amount not received
B. Share Forfeited Account II. Credited with amount not received
C. Calls-in-arrears Account III.  Credited with amount received towards share capital
D. Securities Premium Account IV. Debited with amount called up

Choose the correct answer from the options given below :

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is option 2- A-IV, B-III, C-II, D-I.

List I
(Name of account to be debited or credited, when shares are forfeited)
 List II
(Amount to be debited or credited)
A. Share Capital Account IV. Debited with amount called up
B. Share Forfeited Account III.  Credited with amount received towards share capital
C. Calls-in-arrears Account II. Credited with amount not received
D. Securities Premium Account I. Debited with amount not received

Share Capital Account- Debited with amount called up: When shares are forfeited, the company debits share capital by the amount that was called up. Only calledup amount related to shares are debited.

Share Forfeited Account- Credited with amount received towards share capital. The Share Forfeited Account records any proceeds received from shareholders before forfeiture on account of share capital.

Calls-in-arrears Account- Credited with amount not received. This account is prepared for the unpaid amount from shareholders who didn't fulfill their call obligations.  On the forfeited shares, this account is credited with the amount that is not paid by shareholders.

Securities Premium Account- Debited with amount not received. The Securities Premium Account is debited with the amount of premium not received from shareholders. If premium is received and then there is no use of securities premium in case of forfeiture.

CUET Questions